Wal-Mart, Moore's Law and Open Source

J.E. Kazor writes: "In MIT's 'Technology Review' magazine, Michael Schrage writes about Wal-Mart, Moore's Law, and Open Source. Perhaps instead of spending all of our energy bashing bashing the 800-pound gorilla, Microsoft, we should align the support of a 900-pound gorilla, such as Wal-Mart. Such a symbol of cost conscious efficiency should embrace the benefits of Open Source."

Comments

Wal-mart is a tough customer

[jACL]

When working for a past employer who sells its merchandise through Wal-Mart, I was exposed to its methods.

As a retailer with Wal-Mart, your product has to maintain a 98% sell-through rate, or you don't sell through Wal-Mart anymore. (This, by the way, says something to me about the Mandrake distro, which still sells at Wal-Mart.) You're required to keep track of the inventory using Retail Link.

Wal-Mart piloted Retail Link across the Internet via VPN in 1995 using Sun's Sunscreen product, prior to the standards even being accepted -- they're a bleeding edge company. Wal-Mart is always keeping an eye on ways to streamline its operation and cut costs. You can bet they've already checked out Linux. If it saves them on operating margins, they'll be ahead of the curve.

Walmart, huh?

[filtersweep]

"When it comes to managing high-impact innovation, there is no contest--Sam Walton still matters more than Bill Gates. "

What the article doesn't mention is that many metro and suburban communities VIGOROUS oppose (if not block) the openings of new Walmarts.

There have been huge union issues related to Walmarts the sell groceries.

At a more immediate level, it is downright depressing seeing retirees slaving away minimum wage.

There are a TON of sites about the evils of Walmart:

Walmart Memoirs

Walmart Trash Page

Yahoo stuff

And lest you forget all the censorship that Walmart does regarding music....Censorship at Walmart on Yahoo

I could go on and on about their business practices.

Not to mention that you could hold Jerry Springer auditions at almost any Walmart in the US...

I fundamentally find it ironic that Walmart is used as an example... a very profitable retail chain that is widely hated... that has many questionable business practices... that crushes and destroys the small "mom and pop" retailers in smaller communities.... then again, maybe it is the perfect example?

Re:and another thing they sell

[Captn Pepe]

Judging from their size and crazy profitability, I'd guess that no, there's likely someone else out there not boycotting WalMart. Too bad, really, because it is really a poster child for much of what is wrong with corporate America. I.e. make as much money as possible, with no regard for the costs to society, except when executives feel like using the vast power of a megacorporation to further their personal agendas.

Consider: WalMarts destroy local business via predatory pricing, aggressive marketing, and outright intimidation. Best estimate, for every two jobs created by a WalMart, three jobs in the larger community dissapear. These jobs are regularly worse than average, too: less than 35% of WalMart employees have health insurance, a majority the jobs WalMart creates in communities are part-time, with variable hours and no benefits or opportunity for promotion, and as a result, a significant fraction (a majority in some areas) of WalMart employees live below the poverty line. WalMart justifies these facts by claiming that it primarily creates retail jobs appropriate for working part-time after school or in conjunction with a "real" job. This, when it is single largest employer in many communities.

Nationwide, a majority of WalMart employees qualify for food stamps.

WalMart is also guilty of enforcing cultural homogeneity. Because it is such a large buyer, many publishers in a variety of media -- especially music and magazines -- have begun self-censorship out of fear that WalMart executives will yank a given product from their shelves. The article linked from this story discusses WalMart's increadible influence in the IT market; their influence in a dozen other industries is even larger. People yell about Nike and The Gap because they are brand-image based empires, but most of the output of Mexican, Pacific, and domestic sweatshops ends up on WalMart's shelves, and WalMart is big enough that they don't have to care if people hate them for this.

The WalMart model is a major contributor to urban sprawl and the degradation of community-oriented life. By destroying the local business base, and by locating stores on huge plots of land on the peripheries of towns and cities, it contributes to the flight to the suburbs, thereby increasing dependence on automobile transportation and the assorted problems that leads to.

Enough ranting for now, but maybe you understand why some people aren't too fond of this company. I can't possibly include a reasonably comprehensive set of links here, since people despite WalMart for so many reasons, but a really good links page can be found at Wal-Mart Watch.