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Walmart is truly the king, but no one hardly seems to openly admit it. They have soooo much market share now, and, of course, with that comes absolute power, that they force PNG, for example, to design Kleenex boxes exactly they way that they demand them (color, length, width, depth etc.), and if PNG says no, then PNG would probably shrink away from the top 100 companies out there because Wal-mart would simply go somewhere else to get the product exactly how they demand it. Now that is ABSOLUTE POWER! No one can beat Walmart's prices either (duh), and no one grows that way that fast. Heck, all Kroger's had to do, for example, years ago was copy their buying method, make a regional deal with someone who makes the products you want to sell, then you'll purchases 10,000 sticks of deoderant for 10 stores at $.29 per stick, and sell it at $1.10, while Kroger orders only 10 per week, pays $.79 per stick, and sells the same product at $1.29. You tell me who wins at the end of the day, and do math, who do you think grows faster? Now Wal-mart has sooo much market share that they can bring power houses to their knees and tell them, no more negotiating, what they are going to sell them their product for = POWER!
Why is all of this relevant an important for you to know, because they will continue to grow and gobble up every mom and pop shop globally (Not just in the U.S.), until there is no room to grow. They have to do this, because their payroll is too big, as is their other liabilities. So, they must continue to gobble up additional assets to show positive cash flow. They aren't evil, it's the process of becoming too big that creates the facade that they are an evil company, and anyone making that accusation simply doesn't understand the business world and how it works. It's ok, because we the consumer benefit from their awesome selection of products and great prices. Too bad that the help there is 60-70 range regarding IQ.
Last edited on Jun 17, 2008