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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (94367)	1/9/2005 6:10:37 AM
From: LindyBill	Respond to of 793846

Liberal Order - Wal-Mart and Rising Productivity In what other ways has Wal-Mart's business model benefitted consumers and the U.S. economy in general? liberalorder.typepad.com The authors find that the Darwinian story does a much better job of describing developments in the retail industry. Establishments that exit retail are much less productive than the average at the beginning of the sample period. In terms of entry, they find that new establishments that are owned by existing firms are much more productive than the average establishment. By eliminating some of the less productive establishments and adding very productive establishments, the average productivity of the industry rises. The Darwinian story is likely coupled with the IT story. One way for new technology to be diffused through the economy is for all firms to adopt it. Another way is for firms that know how to use the new technology most wisely to grow at the cost of firms that are not as technologically savvy. Case studies show that WalMart was a pioneer in the use of IT in the retail arena, and that it took time for other firms to learn how to use IT as effectively. While other firms were trying to catch up to WalMart's expertise, WalMart gained market share. Productivity in the retail sector has been above average, led mainly by Wal-Mart. With sales of $268 billion (FY 2003), more than the next three retailers combined, Wal-Mart has forged the path that others follow. The disgruntled are obviously the least productive (less value per dollar, in terms of either wages or revenues) who have lost to Wal-Mart's high value per dollar business model. RFID technology will further transform the retail sector. Food Lion wi-fiplanet.com is implementing an interesting idea with simple scanner and Wi-Fi technology, but what if instead of having to even scan, a screen on the handle of your cart automatically tabulates and keeps a running record of everytime you put in (or subtracts what you take out) of your cart. In other words, each cart is equipped to read RFID chips. Or you simply fill your cart and then take it to the checkout, steering it into a tunnel where everything in your cart is immediately tabulated and displayed on a screen in front of you. This technology is already available, it's just a matter of learning how to implement it effectively. liberalorder.typepad.com