To: durasell
That's fine, but it would have to have the expertise to match the distribution system of, say, Wal-Mart, which it doesn't if it's a manufacturer. And query as to why it would want to invest that kind of capital in such a risky venture when it can continue to make a lot of money simply by selling to Wal-Mart. The profits really wouldn't be that much better than what they would be by selling to a distributer, so why take the risk? How do you justify that to your shareholders? Or a government ownership group?
To: Publius Valerius
Can't answer your questions, but it would seem the next logical stop for China Inc.
780 posted on
05/31/2005 1:13:08 PM PDT by
durasell
(Friends are so alarming, My lover's never charming...)
To: Publius Valerius
Moreover, convenience is still an issue for consumers. Unless these companies model themselves in a Japanese-style where a company like Mitsubishi makes everything from airplanes to television sets, which may or may not be the best idea right now, you STILL have a problem with one-stop shopping--and when you are trying to compete on price, not brand, that's tough.
Why do I want to stop at 6 warehouses when I can stop at one store to do all of my shopping?
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