by CRP

Created on: March 17, 2007   Last Updated: April 18, 2007

Wal-Mart's founding principles are to give everyone a chance to buy the same things as rich people as well as to provide value through lower prices and greater selection.

As another post has pointed out, eliminating the lay-away program is a significant shift away from their core purpose of providing everyone a chance to buy the same things as rich people.

But, perhaps the real question should be are Wal-Mart's principles jeopardizing their success?

Are they really providing value to their communities by steam rolling the competition? The answer to this question depends on your point of view. If you are a locally owned business competing against Wal-Mart, then the answer is pretty obvious.

Consider Wal-Mart's massive purchasing powers. Wal-Mart is has the ability to negotiate terms which are extremely favorable to Wal-Mart's bottom line at the expense of the supplier. Does this provide value to those companies who supply Wal-Mart? What about the communities whose factories supply Wal-Mart?

A case for and against each question could be made. The point is the value Wal-Mart provides is becoming clouded.

Wal-Mart's organization has been built on their founding principles. To be successful, Wal-Mart must remove all doubt as to the value they provide to their communities and customers.

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