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People should be free to choose what is best for themselves as long as they do not infringe on the rights of others to do the same. I created this blog to discuss issues I have with big government, liberal media,and to talk about my support for capitalism and the Iraq War.
5 comments:
Please see
http://personalresponsiblity.blogspot.com/2008/01/wall-mart-once-again-looking-out-for.html
for my response to this entry.
Just out of curiosity- Wal-Mart is obviously able to lower prices in the short-term by using economies of scale and leveraging their buying power. But do you expect their prices to drop more slowly over the long-term (say 10 years) because they don't have much competition? Seems like a reasonable outcome of the free-market model.
I expect their prices to be a low as possible that allows them to still make a profit, and keep their customers happy. Point is there is a market for cheap goods. Everyone knows Wal Mart is not top quality, but top quality is not what people want all the time. Wal Mart (many years ago) found out their is a market for cheap goods and low prices. And for some reason they are bad people. I do not get it.
And due to the fact they have been around so long I do not see them getting rid of competition - i see other companies trying to compete. Target has been around forever and competiting with roughly the same demographic. I would say people understand the Target is a little more upscale than Wal Mart but they will have to pay a little more for that quality. When money is tight - wal mart they go- when not check out Target. Weird how different businesses go after different niches and make money at the same time.
click on any of the links from my previous post on this topic to see why people hate Wal-Mart so much. It's not only because they sell cheap stuff.
I'm talking about long-term price trends, like, how much cheaper will taoster ovens be in 20 years. Do you really think that 2 or 3 big-box retailers provides the same type of competition as hundreds of smaller local stores, in regards to driving prices down through long-term innovation? It seems unlikely to me.
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