Wednesday, June 15, 2005

Team Post#1: Conflict with existing small business

Reading article about the controversy of Walmart in New York, I recognized fearful influencing power of sophisticated and well organized distribution system. The effects occured by building Walmart near the town are vary from collapse of small business to conflict between two states.
This competiton is fair in free market point of view, but it breaks exsisting market structure. By this 'constructive destruction', the economic improvement and the satisfaction of buyer would be attained, but the victims, small business owners, suffer from losing their customers and job. In response of these problem Walmart presented higher wage and 300 job openings, and won't have supermarket in their store.
Expanding can confront confrictions not only btween channel members inside the firm, but also between other channels outside the firm. Anticipating the reaction and handling of exsisting market channel is also needed when Walmart expand themselves to other countries. I'll study more about other example of confliction in other place.

1 Comments:

Blogger Alex said...

i like the reference to 'constructive destruction'

2:08 AM  

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