Ramblings & ephemera

What Dell learned from Wal-Mart

From Fake Steve Jobs’ “Why Dell will not bounce back” (11 May 2008):
On the manufacturing side, Dell figured out faster than the others in its space how to squeeze component suppliers and play them off each other. They brought in loads of former Wal-Mart people to refine this practice. One example: If you want to [...]

Wal-Mart’s monopsony power damages its vendors

From Barry C. Lynn’s “The Case for Breaking Up Wal-Mart” (Harper’s: 24 July 2006):
Instead, the firm is also one of the world’s most intrusive, jealous, fastidious micromanagers, and its aim is nothing less than to remake entirely how its suppliers do business, not least so that it can shift many of its own costs of [...]

The mirror of monopoly: monopsony … which may be worse

From Barry C. Lynn’s “The Case for Breaking Up Wal-Mart” (Harper’s: 24 July 2006):
Popular notions of oligopoly and monopoly tend to focus on the danger that firms, having gained control over a marketplace, will then be able to dictate an unfairly high price, extracting a sort of tax from society as a whole. But what [...]