The Wal-Mart Effect: How the World’s Most Powerful Company Really Works — and how It’s Transforming the American Economy
by Charles Fishman
Wal-Mart isnt just a store, or a huge company, or a phenomenon anymore. Wal-Mart shapes where we shop, the products we buy, and the prices we payeven for those of us who never shop there. It reaches deep inside the operations of the companies that supply it and changes not only what they sell, but also changes how those products are packaged and presented, what the lives of the factory workers who make the products are likeit even sometimes changes the countries where those factories are located. Wal-Mart reaches around the globe, shaping the work and the lives of people who make toys in China, or raise salmon in Chile, or sew shirts in Bangladesh, even though they may never visit a Wal-Mart store in their lives.
– excerpt from the book via walmarteffectbook.com
With 93% of American households shopping at Wal-Mart each year, with over 3,800 stores, with over 1.6 million direct employees, and with over $300 billion in sales, it is hard to imagine the magnitude in which one store can permeate many aspects of our daily lives. This book delves into the “Wal-Mart Effect”; what are the ramifications from one corporation on their employees, their business partners, people who shop there, and consumers and people in general?
With a very good look at the history of Wal-Mart - from meager beginnings in Arkansas in the 1960’s to the international behemoth it is today, Charles Fishman examines how Wal-Mart’s commitment to their costumers has both positively and negatively impacted the world at large. “Always Low Prices. Always.” means that at some point money is going to be saved, no matter what. Through gray area strongarmed tactics, Wal-Mart is able to squeeze every last penny out of a supplier, forcing them to cut costs as much as possible. When they can no longer cut costs enough to meet Wal-Mart’s needs, it is time for Wal-Mart to move on to another supplier — overseas if needed — in order to meet consumer demand.
How ironic is it that the very people Wal-Mart has put out of business, through high pressure demand for low low low prices, are the very people who must now shop at Wal-Mart because they can no longer afford to pay $2 more for grocieries at a competitor of Wal-Mart’s.
This book examines the changing face of our society as traced through the history of Wal-Mart. As this book points out, asking “Is Wal-Mart bad for America?” is like asking “Are cars bad for America?” Eventually the scale of some things can get so large that public policy reform is needed in order to keep things functioning. This book discusses that, as well as the complexities of the backlash against Wal-Mart across the country.
I highly recommend this book to anyone. I think it is a must read if you a currently involved in the retail industry. Beyond that, I think, for consumers, it paints a very interesting picture of the stores that we shop in today, whether or not that store is Wal-Mart. It all ties in and it all effects us equally.
