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Showing posts from February, 2007

Wake Up Wal-Mart

It looks like the 800 lb gorilla is starting to lose some weight. In the most important piece of news that was barely covered last week, Wal-Mart CEO Lee Scott came to an agreement with the Service Employees International Union on the issue of affordable health coverage. Something that once seemed impossible has finally happened: Wal-Mart is losing its leverage and unions are using it to their advantage. The issue is not that unions are any more powerful now than they were a year ago - the issue is that Wal-Mart is significantly weaker. In an ironic turn of events, the business strategy that led Wal-Mart to become the biggest and most powerful company in the world is now leading to what will become its slow and painful down slide.

People grew to love Wal-Mart because of its low low prices. Where else could you go and buy everything you could possibly need at a lower price than anywhere else, guaranteed? Wal-Mart was able to grow because it continued to lower its prices and attract new …