Ideally that's true.
However, there is a certain advantage to being the incumbent. You can influence political leaders to make the rules favor the incumbent business.
The more we have calls for more regulation, the less likely is the scenario that you describe.
I'm not saying we don't need regulation. But understand that an environment replete with regulatory oversight benefits large, entrenched interests.
Not saying there are not niche markets out there. Just saying the scenario you describe will be less commone with more government interference in markets.
Originally Posted By: Pop_Rivit
Originally Posted By: gfh77665
Originally Posted By: Pop_Rivit
Nonsense. Every time competition goes out of business there are a several startups that take their place.
REALLY? How many "statrups" can realistically challenge ChinaMart?
What nonsense.
It's "startups" not "statrups". We were not discussing Wal-Mart, we were discussing Sears. They have two entirely different business models and business philosophies, so your analogy is rather senseless. But continuing your line of short sighted reasoning, at one time Wal-Mart was a startup and challenged the likes of retail behemoths such as Sears and K-Mart. Look where that stands today. And at one time (now pay attention because this is important), Richard Sears, a railroad station agent, started RW Sears by selling coal, lumber and watches as a side business. Within 6 years sales topped $400,000/year. Quite a sum in those days for a startup retail business.
And yes, if Sears were to go out of business their employees who elect to stay in retail would be absorbed by other retailers. The same thing happened when other large retailers went out of business; retailers such as Montgomery Wards, Woolco, Venture, Payless Cashways, CompUSA and a whole host of others.
The retail landscape is littered with retailers who have come and gone, and all of their employees found other jobs. I'm sure many stayed in retail; others used the opportunity to change careers. It's the nature of business; it has happened many, many times before and it will again happen many, many times in the future.
Originally Posted By: JHZR2
That's great but there is a vastly different reality these days.
That's a myopic viewpoint. I've heard the same thing said time and time again, yet somehow those of us who actually go out and start/run our own business' seem to be able to continue to be successful, even in the face of big competition.
The next big retailer won't beat Wal-Mart at their own game. The next big retailer will change the game and Wal-Mart won't be ready for it, just as Wal-Mart once changed the game and many other retailers weren't able to adapt.
Whenever there's a challenge, enterprising entrepreneurs will find a way to succeed despite the naysayers telling them they can't. True that some will fail, but most do well.
