Saturday, September 13, 2008

Open Wal-mart: The failing of extreme capitalism.

Did you ever notice that there is nothing really special at Wal-mart? In fact it is entirely possible that every Wal-mart store offers exactly the same things. Now while strong branding and uniformity of product is seen as a strong market position Wal-mart has taken this approach to the extreme. To their detriment as well.

Wal-mart employs a buy-low-sell-at-the-lowest-price-the-market-will-bear policy. Wal-mart, under the auspices of 'saving you money', is lowering the overall standard of product quality offered in favor of meager profit margins. Effectively Wal-mart has trained consumers to accept large volumes of low quality commodities.

Wal-mart marries this buy-low-sell-low practice with the understanding of the American consumers belief in one stop shopping. Once in the door the customer belongs to Wal-mart. Wal-mart, not the customer, decides what will be available to the purchasing public. Wal-mart is training their customers in what is an acceptable standard of living.

A side note worthy of mention is Wal-mart's practice of importing low cost, low quality goods in order to meet the lowered expectations of their well trained customers. Sadly, when the goods are imported American money leaves the country to pay the substandard wages of workers who have undercut the American job market. That's right, we have perpetuated our own worsening employment circumstances by allowing Wal-mart to flourish.

So, when facing the prospect of union representation for its employees Wal-mart quickly realizes that its extreme capitalism practices are built on a less than firm foundation. Wal-mart recognizes that its one real cost, the low wages it pays employees, cannot be outsourced. In order to continue to show the degree of profitability when having to pay union scale will mean that prices will have to rise.

This in turn will show their customers that in a truely competative market place that price vs. quality is the real value of the transaction. Simply offering the lowest priced lowest quality goods will quickly be seen for what it is - usuary profiteering of the worst order.

Wal-mart is affraid of unionization because it knows that Sam Walton's sand castle will crumble when the playing field is leveled.


I am going to vote for Barack Obama.
I am William "Papa" Meloney and I endorse this message.

No comments:

Post a Comment

. . .