Growing Wal-Mart Scandal Reveals Company's Flaws

April 24, 2012
The growing Wal-Mart scandal in Mexico is revealing some fundamental flaws of the Mega-retailer. Despite the huge run-up in most share prices since 2009, Wal-Mart has floundered, lagging behind the broader S & P 500 Index by about 2/3. As it seeks to ...

The growing Wal-Mart scandal in Mexico is revealing some fundamental flaws of the Mega-retailer.

Despite the huge run-up in most share prices since 2009, Wal-Mart has floundered, lagging behind the broader S & P 500 Index by about 2/3.

As it seeks to expand outside the United States, Wal-Mart is finding it more difficult to make its domestic model work elsewhere.

The company's historic advantages of low wages, squeezed suppliers, and cheap Chinese manufacturing are each fading away.

Simply stated, Wal-Mart cannot pay its workers any less, whether it is in Mexico or the U.S.

Having extracted nearly every last drop from most of its suppliers, there is little, if anything, left for the company to get.

And, with manufacturing costs and inflation soaring in China, Wal-Mart's workshop has now become far more expensive to operate.

With growth feeble and its competitive advantages going by the wayside, we shouldn't be surprised that allegations of "cooking the books" are emerging.

As George Orwell observed, "It is only when someone is winning that they appear invincible".

Popular Sponsored Recommendations

Turning Your Frontline Workforce into a Competitive Advantage: A Comprehensive Guide

Sept. 19, 2023
In this guide, we'll explore how manufacturers are using digital technologies to preserve the bottom line and maintain growth by enabling and empowering their #1 asset - their...

Modern Edge Computing Accelerates Smart Manufacturing Initiatives for Discrete Manufacturers

Oct. 22, 2023
Discover how Edge Computing platforms are a requisite for discrete manufacturers to solve production challenges, accelerate digitalization, and establish a reliable infrastructure...

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!