Tuesday, November 30, 2004

Wal-Mart

If there is a single entity that exemplifies corporate America’s ability to exploit the working class it is Wal-Mart. In corporate terms it is a behemoth out earning both Exxon and GM in revenues. The business model is simple:

(i) find areas that serve a socio-economically challenged population
(ii) ensure the location is more accessible than competing retailers
(iii) offer every necessary product and service
(iv) undercut local retailers

To use an ecological analogy, think of a rock on an inter-tidal shore. The rock is covered in different species like barnacles, crabs, algae and anemones. Everybody on the rock is happy and as time unfolds the rock experiences different events that favor some species and not others. In the end the balance is always changing but the species richness is maintained. Then one day a big ass crown-of-thorns starfish finds this rock and consumes everything. It blocks light so the algae can’t grow, it eats the barnacles and starves the crabs. In the end there is just the rock and the starfish. All the other rocks are also inhabited by starfish. Now what? As soon as there is a new event that kills the starfish there is nothing, just a whole lot of rocks.

This is the problem with Wal-Mart and with the general pattern of conglomerating the planet. The lack of corporate diversity makes it difficult to react to social and economic changes. Challenging Wal-Mart is complex. It’s easy for people like me to say “Boycott Wal-Mart” the reality is that some families can’t afford to shop elsewhere. It’s not that they aren’t willing to support local family owned retailers, they can’t. The resolution lies in changing the global distribution of wealth. I’m not decided on how to accomplish this, and probably never will be but I’m certain that the root cause of many problems, including the rapidly spreading disease that is Wal-Mart, can be solved by addressing inequities.

4 Comments:

Blogger SheaNC said...

I feel you're right. WalMart runs advertisements portraying themselves as community-saviors. They try to seduce people by claiming they bring jobs to the community and do good works like giving money to schools, etc., all the while swallowing up local businesses and regurgitating inferior products that ensure repeat business that borders on addiction. And your're right about how many people have no choice... when the local businesss have finally been run out of business, there's no place else to shop. It's troubling, and very sad, too.

11:23 PM  
Blogger mochi said...

I just wish I could offer something concrete as a solution. It's tough to fight instinctual behaviour.

4:34 PM  
Blogger SheaNC said...

Er... Target? :)

2:12 AM  
Anonymous Anonymous said...

I understand many people's fear of Wal-mart, and my own attitude to it is no better than ambivilent, and occassionally worse.

Still, the notion that it killed small town stores is not universally true. I lived in Arizona small towns most of my life, and Wal-mart didn't kill any of our local stores, because we didn't have any.

Wal-mart was the first place we had to buy anything....

11:01 PM  

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