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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."
Open source hippies. Sheesh.
"Embrace open source?". The hell the should.. just as they should not 'Embrace' any other buzzword or technology. Why? Because to PROPERLY be flexible, you have to look at ALL Your options.
That's the problem with many open source zealots these days. So many of them can't see beyond the purchace price of the software, or the fact that they can hack away at the code. They blab about security.
Open source security? Is open-source a better model for security? In a way.. as anyone who cares to can go have a look at it.. but does that make anything open-source better? No, absolutely not. It's like arguing risc-vs-cisc... someone saying their processor is 'better' because it is risc. In other words, they mix up a technology or methodology being better with an actual implementation being better.
Cheaper? Certainly in some cases. But in others, the cost of windows is NEGLIGIBLE compared to the cost of other tools in use... tools that don't HAVE an open-source equivalent. Tools that have some serious technical support.
I'll advocate free tools anytime... if they make sense. But in many cases, the proprietary stuff IS better, that's reality.
What? It's their property; They can put as many security cameras as they want on their property just like you can do to your home. They can also CHOSE which music they want to sell. You don't have to shop there. You act like they are forcing you to shop there. Get real. I don't know what moron modded that up.
Wal-Mart is a retailer that drives many other small local retailers out of business.
Wal-Mart doesn't drive stores out of business, ratehr, it's the consumers who chose Wal-Mart over their local stores that cause small stores to close. It's a matter of choice, and many people chose to vote with their pocket book. Wal-MArt often is no cheaper than other chains - in fact, their policy is to price at the competitor's prices and make a greater margin due to lower costs. If a competitor wants a price war, they'll fight back and win, but they typically don't start one.
So how do local stores survive - by offering things, such as service and selection, that Wal-Mart doesn't. I buy video games at a small store - I know the owner, and he tajkes care of me. If a game is junk, he recommends not buying it. When PS2's were hot, he had them for his regular customers - at retail price. If I want a certain used game, he'll hold it when he gets it. Wal-Mart doesn't provide that service, and I'll pay a little more for it. He also beats the big chain rentals by charging less and having reasonable late fees - such as a dollar for one day rather than a full 3 day rental price.
Price isn't everything, and by serving customers who value service over price, small stores can survive. Wal-Mart's real threat is to the Kmarts and Targets - which is why Target went up market and KMart looks like it'll stick to urban locations here wal-Mart can't get space and some Super-K's.
I'm a consultant - I convert gibberish into cash-flow.
This is only true where Wal-Mart has established, large scale competitors.
When Wal-Mart opens a new store, they usually sell many items at a huge loss, ostensibly to draw in new customers. But since many local, small-scale businesses cannot afford to match those below cost prices, they founder and die. Once gone, wal-Mart raises prices. This is called predatory pricing, and is illegal. In that kind of game, the deepest pockets win, which is why when they compete with larger companies (Target et. al.), their prices are similar; they each have enough resources to price match the other for an extended period of time.
Wal-Mart has been found guilty of predatory pricing and fined. But the practice continues. Hence the comment that Wal-Mart drives local, small retailers out of business. They do.
You're right, though, in that one of the real problems is that most people shop to save a buck. They'll drive all over town getting 18 mpg in their SUV because Coke is $0.49 cheaper at Schnucks this week.