Wal-Mart World: The World's Biggest Corporation in the Global Economy

Now that I have read nearly the entire shelf of books on Wal-Mart, I can say without hesitation that this is perhaps the best. It is a very full academic treatment by over 20 authors on a myriad of subjects, and critical but not at all biased in my view. Wal-Mart's original business model arose out of a rural milieu, the Ozarks. This is a conservative, Christian region that opposes unions, feminist independence, and government intervention in the economy. Sam Walton based his strategy on the idea that he would sell at lower prices all the time, and make his profits by selling at higher volumes. The second part of his strategy was to relentlessly pursue efficiencies in the supply chain (becoming a global technological pioneer) as well as through labor practices that kept costs (read wages and benefits) low. For example, Wal-Mart understaffs its stores intentionally, forcing its workers to work hard, often without breaks or overtime payments; this increases productivity, which its anti-union policies serve to buttress. This strategy enabled Wal-Mart to become the world's largest corporation by 2003, largely by expansion into rural America. Once this area was saturated, Wal-Mart began to seek new retail markets. This is where Wal-Mart's original business model began to show its limits. Urban areas were different political entities: unions were strong, sophisticated consumers opposed Wal-Mart's practices (e.g. its apparently deleterious impact on town centers), and activists targeted the company with protest campaigns. Moreover, when Wal-Mart sought to enter foreign markets, it tended to meet both brutal competition and a different regulatory environment that undermined its business model. To thrive, Wal-Mart must somehow change its core strategy. This is an excellent introduction to perhaps the world's most powerful company. Virtually every chapter offered refinements and detail to my understanding of this complex company. It will serve as an essential reference for me as I undertake a large study of the company for scholarly purposes. However, as it was published in 2006, it is already somewhat dated. Warmly recommended.