Replies

Wal-Mart has an unbeatable system to consistently both defeat its competitors and generate a stable profit for itself long into the future

Might be true, if they were the only ones doing it. Which THAT underscores the issue.

BTW most products in Wal Mart are not "Wal Mart" stuff. They are brand names who market their products inside of Wal Mart.

Those sub contractors of Wal Mart are the ones buying from China.

There are middle men in there...

Size does matter though. Thats true. Who wouldn't give a good price if you are promised $10 million in sales?

Just so you know though, if something cheaper comes along (potential free trade agreements or something) then China might not be the best or cheapest anymore...

Now I am going to sleep.

It's not guaranteed that Wal-Mart low-cost producer strategy will win forever, but right now and for the next several decades, it seems to be a durable advantage. Companies like Target and Kohl's are new entrants as well, but they're not taking Wal-Mart head-on, but trying to differentiate by being a little more up-market.

Eventually, Africa might take China's place as the world's source of cheap labor, but by then China will already be a First World country and no longer need exports as much. China will have better things to do.