Is Wallmart good for America?
Consumer (customer) prospective- WALLMART providing consumer goods at lower prices if we compare to other stores...... so it’s good ...... consumers are saving out from their daily consumption needs and investing more...
Manufacturer prospective- lot of companies shut down their operations and auctioned off because they were totally dependent on wallmart like rubbermate. Because wallmart is screwing up all the companies for low prices and companies are not able to survive but wallmart has other options like chinese companies.....so it’s bad.....
Economy as a whole- wallmart is importing 80% of goods. It leads to high trade deficit in recent years. It’s bad. wallmart is creating lot of job opportunities in America but at lower wages. So again, it’s not so good.
So what is good in wallmart???
Wallmart is gaining power over all of their suppliers. First wallmart screwed it up lot of the American companies by this power and now what??
Is wallmart able to use this power on Chinese suppliers to screw it up?
If no, then what will happen to wallmart and america, if Chinese companies also entered in to retail field?
(They already got American technology and following American systems to work)
If yes, then who else will supply goods to wallmart?
Two ways possible-
1) Internal competition in china....( restrictions are government of china won’t let it happen like this)
2) Try to explore countries like india and others.....( do Indian companies have a potential to compete china)
Now come to india point-
If wallmart entered in to india then how india will be effected?
First indian industries which are not able to compete with Chinese products, they will not survive. Second india industries who have potential to compete, they will get benefitted..
But are Indian companies really having that potential right now??
I don’t think so.
May be in some areas like automobile parts, tyres , software services, outsourcing works. We are doing good. But it doesn’t mean that we will also do well in manufacturing of consumer goods because Chinese are far ahead from us in technology etc. we have opportunity but difficult to tap....
So what should we have to do??
Either be a retailer or manufacturer??
So let’s start comment on it....
6 comments:
I think we should try an be a manufacturer and produce the goods at lowest cost possible, so that we are able to compete with china. because if Chinese products dominate the Indian market then and the Indian manufacturer will not able to survive, so we will become dependent on them. So they will crush us whenever they want.
I think we should be a retailer, and grab the opportunity, we might change to manufacture in the futur. Becuause i think going with the trend being retailer is more profitable. so why not enjoy the profits which are coming to us.
Another reason is based on the believe that "If all are going for reatiling then who will manufacture" so i think that its a cycle in which power moves from one person to another, since there will be more retailers and less manufacturer the power will shift from retailers to manufacturers in some time. So its a good thought to invest in retail now and manufacturing later in future.
anant whatever you said,its right that if we don't take any step.we will suffer in future but look at ankita approach its more agile and value worthy..
but thing here is that we have identify the industries or say to be sectors.in which we have to apply these different approaches.
our approach toward this question has to be more specific.
so try it out guys....
thanks for a comment....
China is far a head in terms of technology in manufacturing consumer goods. But, what i feel is, it is some what difficult to tap the Indian market when compared to US to any body.
going to retailing is not not a solution to our problem .we have to focus on manufacturing for that we have to exploit our internal resources like (forex reserves,external commercial borrowings limit)so that we able to produce in mass .as this is the fundamental of china's economy
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