I find Wal-Mart fascinating. Wal-Mart is a near perfect example of Clayton Christensen's "Innovator's Dilemma," in many ways. The very things that have made it spectacularly successful are also causing its stuttered growth, as BusinessWeek captures in this illuminating article.
...[Wal-Mart's] fundamental business problem is that selling for less no longer confers the overwhelming business advantage it once did. Low prices still define the chain's appeal to its best customers, the 45 million mostly low-income Americans who shop its stores frequently and broadly. But the collective purchasing power of the "loyalists," as Wal-Mart calls them, has shriveled in recent years as hourly wages have stagnated and the cost of housing and energy have soared.Even if this pool of low-income "loyalists" were flush with cash, Wal-Mart still has to …
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