Friday, November 04, 2005
Wal-Mart: The Model of Business in the Flattening World
Relationships in the Digital Age: Wal-Mart: The Model of Business in the Flattening World
CBarr's blog Relationships in the Digital Age has a great post which explains why Wal-Mart is the model of efficiency and productivity for the digital age. Great for customers, but a threat to labor:
Understanding how Wal-Mart has the power to control and transform its suppliers and even national economies is important. What role does information management made possible by high-speed computing and networking and powerful software play in the emergence of Wal Mart as a world power in the digital age?
CBarr's blog Relationships in the Digital Age has a great post which explains why Wal-Mart is the model of efficiency and productivity for the digital age. Great for customers, but a threat to labor:
Each time Wal*Mart was able to create lower prices for itself, it passed these savings onto its customers in order to undersell its competitors. Now, Wal*Mart has such influence with its suppliers, it is able to drive prices down even further. However, Wal*Mart differs from other Big-Box Retailers in that it has shared its efficiency model with its suppliers to drive down costs even further. Wal*Marts ever increasing efficiency has spread like a virus through its suppliers, and the access given to them by Wal*Mart into Wal*Mart's inventory has helped to further drive down prices and lessen the amount of out-of-stock items, which is something it is working on further with the use of RFID chips.
Understanding how Wal-Mart has the power to control and transform its suppliers and even national economies is important. What role does information management made possible by high-speed computing and networking and powerful software play in the emergence of Wal Mart as a world power in the digital age?
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It would be nice if the oil companies were as concerned as WalMart about the prices customers pay at the pump. Thanks for making a comment
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