The "Wal-Mart Effect"
I remember one time when someone said that Wal-Mart (WMT) was a "cult masquerading as a company." They were referring to the everyday low price strategy that has always been far more than a slogan.
But even more so, it was the fervent commitment to those low prices and almost religious way of looking for ways to cut costs that has evoked that saying.
And more importantly than that, they passed on those cost savings to the very consumers who needed those types of low prices to afford things they otherwise couldn't.
Some consulting services have said that when you consider the prices at Wal-Mart stores, plus the price cuts and efficiencies that their competitors have been forced to make to compete, the annual savings for consumers is over $100 billion a year.
Even economists reference the "Wal-Mart effect" saying that they've helped to literally hold down inflation and cause huge productivity gains throughout the economy year after year.
Of course you always have jealousy and opposition when you run a company this well. When you see the condition of the American automotive industry and the California penetentiary system, as two recent examples of the devastation that comes from putting union principles into action, it's shocking to think that these irrelevant, ignorant people are attempting to destroy one of the great companies that's ever been created.
Think of a future where the costs at Wal-Mart are artificially inflated and consumers can no longer afford the products they now can enjoy. That's the world that will come about from those that have attacked not simply Wal-Mart, but the portion of the population that needs them the most.
What is really hated about the company is that they've shown that it can be done without union interference. Wal-Mart has done their job so good that it's literally changed the economics of America for the better in relationship to inflation. It's an extraordinary accomplishment that started with a great business leader.
Sam Walton: 10 Rules for Building a Successful Business
Sam Walton - Retail Success Story
Sam Walton: King Of The Discounters
Sam Walton: Great From the Start
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