09-02-2007, 04:49 PM
Quote:Economic theory tells you that this is quite backwards. ... The Wal-Mart appears to be a step backwards, because it drives those people out of business.How would you rather have your car manufactured, like Ferarri, one at a time and expensive, or like Ford in a mass production line and affordable? This is what Walmart has brought to retail distribution. They are very efficient, they negotiate deals with manufacturers to bring prices down, and they automate everything they can to cut labor costs. I could envision a system where the Mom & Pops could survive, if they had something similiar driving their distribution chain. Walmart is successful, because they are out smarting their competitors. You could make the same argument for every inefficient system that has been modernized. I wish we could bring back the days of horse drawn carriages.