The Wal-Mart Effect: How the World's Most Powerful Company Really Works--and How It's Transforming the American Economy

This book is a perfect analysis of Wal-mart and the effct it caused and causes in this world. It is a must read for how ever wants to understand economy , or just the world he/she is lives in.

Good condition.

This is a fascinating book about a fascinating phase of capitalist history, and is an interesting antidote both to the luvvie new-economy out-of-posterior-blowing efforts such as Chris Anderson's The Long Tail and the Stage 1 Pol-Sci anti-capitalist dreck which usually passes for informed criticism of the corporate sector in these enlightened times.Whereas there may be some mileage in the contention that the internet has permanently pushed the threshold of viable business down the Long Tail - thereby creating a virtuous circle of more demand, more choice and more diversity of supply, here is a barnstorming tale of the organisation that seems single-handedly to scotch that argument. If there were much merit in Chris Anderson's general thesis, it would be hard to explain how, in such a transparently open and competitive market as the United States, one retailer - one *low margin* retailer - can have gone from a standing start to a 30% market share of almost any business it has cared to be in, in the last 30 years. For Wal-Mart is the very essence of the Fat Head, that part of the market which is supposed to be fraying and deteriorating before our very visual display units.There is some mileage in the Long Tail, to be sure - for every Wal-Mart, there's an Amazon.com - and the truth no doubt lies somewhere in the middle. What is fascinating is how Wal-Mart's position as a monopsony (a buy-side monopoly, in other words) has stressed the economy and traditional business models in hitherto unforeseen and unanticipated ways, but has not troubled the carefully framed anitrust laws.Fishman's account is balanced: he has a healthy respect for the brilliance of Wal-Mart's model, the unrelenting execution of its business plan, and the beneficial (and not always quantified) effects it has had on the US domestic economy in the last thirty or more years.But he is no proselyte: for every success story like Makin' Bacon's, a well-managed, successful company has been sent to the (er...) Wall by the monosponist's relentless quest for reduced margin, and Fishman covers these stories - together with some altogether unnerving information about the Wal-Mart effect on the global consumption (and husbandry) of Salmon - in unflinching detail.My hunch is that a true monopsony can't last as a natural state of equilibrium in a market so dynamic and competitive as America's, and Fishman's well developed argument is that, indeed, we may already be seeing the decline of the Walton empire, so perhaps the doomier passages of the book are overstated and in a decade we may wonder what all the fuss was about.Nevertheless, for an incisive, economically literate, and well balanced book about the pros and cons of American style corporate capitalism (wildly superior to, for example, Joel Bakan's simple-minded "The Corporation"), this book comes well recommended.Olly Buxton

I came to this book in search of solid reporting from within the company - afterall, the cover boasts that the author "penetrated Wal-Mart's wall of secrecy." Well, I am sorry to report that the author has done no such thing. Instead, what the reader gets is a rehash of some of what has already been written (if by him in many instances), with extended (and repetitive) stories on outside critics as well as some partners (suppliers) of the company in stories that are so long as to feel like filler. But he does not find any honest visionaries or even concerned doubters within the company to offer perspective, which I was hoping to find. Moreover (and far worse), there are huge gaps that the author entirely misses or indeed may have preferred to ignore.Wal-Mart's business practices are well known: promising "everyday low prices" and convenience as its competitive advantages as a general merchandiser, the company relentlessly searches for cost-efficiencies in the form of squeezing suppliers, offering relatively low wages and little health care, and developing an unprecedented logistics operation that literally spans the globe with sweatshops in China, etc. That is about it and it explains the company's phenomenal expansion and the growth of its power.Of course, the case of the critics is becoming equally well known: 1) workers need a "living wage" and better health coverage options; 2) suppliers need better treatment so that they do not ruin their brand when selling to WM; 3) local governments should not face so much pressure to grant tax breaks and other concessions to WM; 4) local businesses need some protection and nurturance to stay in business when WM comes to the community; 5) WM needs to learn to listen to the concerns of critics and act on them better.Fishman covers these areas competently, if by reiterating stories that anyone who follows the issues should know, such as the way that Vlasic pickles was bankrupted by being forced to sell at a price too low to sustain itself. (This important example, which he broke in his original article for Fast Company is now repeated in just about every critical source I have read on the company.) As such, the substance of the book is really not much beyond what should appear in a long article, meaning that there really is no much new in this book - it is just a compilation of what we know, well written perhaps, but surprisingly thin.I did get some detail on issues such as the environmental impact of WM's demand for Salmon on Chile or what economists are researching on the company. In addition, there is very useful original reporting on WM's foreign-factory inspection programs, which Fishman portrays as PR window-dressing and which I will use in my currect project. Nonetheless, I was often disappointed at the thinness of the reporting and the sparseness of ideas in the text.However, what Fishman fails to cover - and which is already becoming well known - diminishes the value of the book. At the moment, Wal-Mart is facing a series of crises. Not only has it saturated the rural areas of its origins, but customers are beginning to tire of the low quality and shabby, pedestrain styles it offers. This is directly reflected in its declining stock price and profit margins. Finally, consumers are beginning to learn and disapprove the company's practices.The remedies to this crisis are far from certain. First, WM must go into new georaphical areas, that is, into more urban environments. Unfortunately, it has proven rather inept at doing so because unions and political activism are strong in these areas, which translate into passionate resistence to the company in the form of economic empowerment, community control, decent treament of workers, etc. (I have witnessed this first hand as a reporter in the community of Inglewood, near LA, which mobilised a diverse coalition and beat the snot out of the company.) Second, the company hopes to appeal to higher-class consumers, who disdain its style while shopping there for low-margin generating necessities. These are precisely the well-educated consumers who oppose the company for all the reasons that critics are advancing: environmental impacts (traffic and pollution), the assault on traditional downtown areas, etc. Getting them onboard, let alone in, may not be possible.Thus, to placate these critics, WM would have to do the unthinkable: pay more, invest more in the community, and refrain from certain forms of competitition. Alas, this would erode its competitive advantage, forcing the company to raise prices and hence undermine its core business model. Amazingly, Fishman barely acknowledges this dilemma and offers no comprehensive analysis on it. This is not great reporting if you ask me.So I would only tepidly recommend this book. If the reader wants a general introduction, this is a decent place to start, if incomplete. But if the reader knows the issue and argument, don't bother with this book if you are looking for new detail or comprehensive coverage. A far far better book is Nelson Lichtenstien's Wal-Mart: The Face of 21-Century Capitalism.

Most people are generally in favor of both a just society and low prices. So what are they to think about Wal-Mart Stores, Inc.? Is it the world's most rapacious retailer or a great place for a bargain? Does it rule its suppliers, forcing them to run overseas sweatshops to compete or does it spur more economical products? Does it pay rock bottom wages and relentlessly pursue profits, sales, market dominance and cheap goods, or does it provide rare relief for the consumer? The accusations sound daunting, unless you are a budget-weary customer. For many shoppers, these are uncomfortable contrasts. And whatever you think of Wal-Mart, you can't ignore it. With huge stores across the U.S. and worldwide, Wal-Mart, according to Charles Fishman, is not just "the world's most powerful company," it is an "economic ecosystem." Railing against it is like shaking your fist at a tsunami. Wal-Mart is nearly impervious to external impact, but Fishman has made it far more knowable. Given the debates it provokes, the impact of its policies and the price wars it wages, getAbstract welcomes this look behind Wal-Mart's shelves.

A real eye opener !!!

Nothing interesting , Not written in a readable way . It begins with boredom and latches on to some uninteresting data . No connections between chapters . Some random chapters which I'm sure you can find on Google now a days .

This book jumped out at me from the very first moment I saw it. It wasn't on my list of books to read however the title grabbed me. Wal-mart is on the leading edge of my favorite topics. I don't shop at Wal-mart anymore. I have come to dislike Wal-mart. As far as the book goes its a good read. Fishman has a nice style of writing like any good reporter should and the pace and presentation of the story he tells reads like a good episode of 60 Min. I enjoyed it.There is nothing stunning about the facts Fishman presents to the reader. That is, if you, like me, read a wide variety of center to left news magazines in addition to all the right wing spew that oozes out of the Television. The Wal-mart effect has been well documented in "The Nation", "Mother Jones" and "The Progressive" magazines for years. It is an ongoing story. The real kick in the pants is that this is now main stream. Wal-mart is way out of control. Wal-mart is out of control in the way a 380 lbs linebacker with the mind of a 4 year old is out of control. The linebacker needs handlers to keep him from hurting those around or himself and in that sense Wal-mart needs the government to step in and handle them. The reasons why are very well presented in the book which I encourage you to read. (I borrowed the anology from Fishman)There are two other things that interested me about this book. One is Wal-marts dedication to bringing the shopper the lowest price at any expense. I feel quality has been sacrificed. Fishman lists a variety of examples from sprinkler to blue jeans that have had the quality cut as well as the cost of labor inorder to achieve the 5% cost cut per year mandated by Wal-mart policy. I think that the shopping experience at a Wal-mart suffers from lack of quality as well. Wal-mart is a manisfestation of the cheapening of our society. The other thing is taxes. Fishman doesn't really go into the Wal-mart effect on local municipalities. (Some but there is much more) Wal-mart shops for locations. They want cheap. They want towns to fork over municiple service and build streets and handle traffic AND give up a big tax break. They present themselves to the town selectmen as if the 300 jobs they bring into a community will be the payoff. If the town won't budge on a Wal-mart demand then they head up the road to the next town. Wal-mart dosn't want just the cake and the frosting... Wal-mart wants the serving spoon, the plate, the cart you wheeled it in on, you get the point. Fishman does touch on this issue in general. I would like to have seen a bit more information on this. The cost of 300 low pay, part time jobs with crummy insurance to the town that gets saddled with a Wal-mart is often so high thats it is not worth it. The health insurance gets paid by governemt services, the traffic gets handled by an already over stretched police force, the firedepartment now has added responsibility and by the time all the real costs are added up Wal-mart starts looking like a 800 lbs gorilla on the back of local taxpayers. I would venture a guess that would be one Wal-mart does not want to be well known.All in all this is a must read. I use to shop a Wal-mart. Then I became a guilty exploiter of just the amazing fishing department. Now I have weaned myself off Wal-marts low price altogether. I just can't afford them anymore

I changed my review cause i think this book point out lots of bad things about Wallmart and thats what i was expected. A few chapter paint a nice picture of them but these chapter are not very interesting. The fact is you can't built a good business is you enslave people a make lots of people loose there jobs and work for nothing. Wallmart is the best exemple of a business that should have never existed unless its doing fair business witch is not.

My subtitle would be: Wal-Mart is a BullyImagine this scenario:A 115-year old company respected for its quality product/s and loyal buyers is selling an item for X amount, which allows them to compete, provide medical coverage for its employees, donate to local charities, pay for the raw materials, give employees the weekend off and a week (at least) paid vacation. These employees earn enough to save for eventualities, afford a reasonable house and so on.The company decides to become a supplier to Wal-Mart because of its vast national and international reach. Its product soars via Wal-Mart, eventually amounting to 75% of the company's sales. That is year one.Year two, Wal-Mart has a "talk" with the venerable company and tells the CEO that if they want to continue with Wal-Mart they will have to reduce their price to a set amount--this is not a negotiation--because Wal-Mart's goal is: "Always the lowest price. Always." The producer/supplier/manufacturer winces, but takes the squeeze.But the supplier soon finds out that the Wal-Mart "talk" is yearly and each year there must be a price cut, which will affect the supplier's number of employees, the benefits it gives and so on. Eventually, the only way the company can survive is to cheapen its product and/or move overseas.So, employees are fired, their spending in the community lessened, life's benefits are lowered or eliminated and life is more miserable. Pleading or reasoning with Wal-Mart is useless: They don't care. They want more and more customers and the way to get them is lowering prices.The above is the essence of this book, except the book is more dramatic, more depressing and shocking (though enlightening), and based on real scenarios, over and over. Seldom have I read a book that was so overwhelming. Although the author seems to go off on a tangent at times, the main gist of his book is that Wal-Mart is the best (read: worst) example of the high cost of low prices.Personally, I never shop at Wal-Mart. Yes, I have visited twice and bought exactly one item, regardless of its price. I don't like the moral tone of a company that browbeats its suppliers--other companies--out of existence or forces them to go to very poor countries where 20 people can be hired for a living wage of one U.S. worker. It has an end goal--the lowest price--and doesn't seem to much care about the means to that end. Our country and people will become economic slaves with not much freedom to shop elsewhere for variety and quality.Following are some pertinent quotes from the book:PAGE 103:"Sure, Wal-Mart has held inflation down; it's great to have bargains. But you can't buy anything if you're not employed. We are shopping ourselves out of jobs"PAGE 106:"Eventually, the only way to lower costs is to manufacture outside the U.S., in countries with lower labor costs, fewer regulations, less overhead. This [constant price-lowering] element of the Wal-Mart effect remains largely hidden from public view."PAGE 165:"We find the presence of Wal-Mart unequivocally raised family poverty rates in U.S. counties..."--a university study where everything else but Wal-Mart was controlled for.PAGE 179:"Part of the reason Wal-Mart can sell a salmon fillet [dirt cheap] is they don't [accept] all the costs. Pollution ultimately costs money--to clean up, to prevent. [As does] reasonable wages, proper equipment, worker breaks, days off [even ONE]. Right now those costs aren't in the price of a pound of Chilean salmon."PAGE 203:"The only thing likely to make you smile at Wal-Mart is the price. In fact, it isn't really a place to shop, it's a place to buy things--bring a list, check the items off, get out. ... Wal-Mart is relentless at measuring its own costs; it isn't so interested in measuring its customers' costs."PAGE 236:"Wal-Mart isn't subject to the market forces because it is creating them [because of its size: the biggest company in the world]."PAGE 240:One of the highest percentages of workers on Medicaid work for Wal-Mart--mostly because they don't make enough money at Wal-Mart not to be on Medicaid.PAGE 269:"Wal-Mart can't seem to grasp an essential fact: The company has exactly the reputation it has earned: ... How it treats store employees; the relentless pressure that hollows out companies and dilutes the quality of their products; the bullying of suppliers and communities; and its corrosive secrecy."PAGE 272:"Low prices looked great for years, until we got a peek at [Wal-Mart's] hidden....costs. It's possible that the long-term consequences of muscling suppliers into sustainability will actually be unsustainable."On the flip side, Wal-Mart is so big, powerful and influential that it can actually change the economic life of it's customers (and citizens around the world) for the better. If it took the lead others would follow. But it keeps its head in the sand and continues to be what it mostly always has been. If you're not sure what I mean, simply re-read the review.