Why is Wal-Mart so successful?

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her209

No Lifer
Oct 11, 2000
56,336
11
0
Originally posted by: Jadow
1. massive economies of scale due to their volume
2. the most efficient supply chain in the universe
Are you sure on point 2?
 

Generator

Senior member
Mar 4, 2005
793
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Also don't forget that Walmart can bully their suppliers to lower their prices because Walmart market share has a shitload of buyers.
 

trenchfoot

Lifer
Aug 5, 2000
15,759
8,339
136
recalling the business courses i took in college, labor is the biggest expense a for-profit entity sees. wal-mart, being vociferously anti-union can keep its labor costs way down.
match that with big chain domestic volume purchasing and judicious use of importing "value" merchandise and you have a recipe for success.
the down side of this formula is that whatever you save buying product from them is somewhat offset by the idea that we are all subsidizing their employees by having to pay higher taxes to provide essential services that their line-level employees aren't getting (due to low pay and meager health/welfare benefits) from the company they work for.
in other words, wal-mart is passing on to all of us a substantial part of their operating costs (through increased taxes) and converting what was an expense into pure profit. genius.
 

Avalon

Diamond Member
Jul 16, 2001
7,571
178
106
Originally posted by: RobCur
Is it everyday low prices?
Is it everything in one store aka as convenience?
Is it because they know how to buy things in wholesale price and sell to you at much less then other competitor?
Don't hate them, what would you do without them? Pay a lot more for stuff you can get for 1/3 to 1/2 price at walmart?
I almost forgot one last thing, is it because they open 24hrs a day and is everywhere even in your backyard?

I would probably shop where I normally shop if they were to disappear: elsewhere.
I see trees in my backyard, but not Walmart. Where do you live? Pics?