Leaving Wal-Mart with a changed outlook?

[CKN]

Barriers to entry have become beyond anything reasonable and IMO, criminal
At times.

You can say that on just about anything. Want to start your own oil company? Coast to coast grocery stores? Credit reporting agency? Try starting another ICE car manufacturing business-the list goes on.

See how it works out......it's the day of big business-it is what it is.

 

[John105]

There are those who feel that way. I am not one of them. Opportunity abounds!
Does tech play hardball? Sure. Go big or go home.
There's always been crime in business; heck everywhere, right?

Thinking Amazon is restricting another company from doing business shows limited understanging. Do you think I should be able to tell Amazon what to sell or not sell? That's silly. Amazon has no monopoly; here's a quick list of their competitors: eBay, Walmart, Target, Microsoft Azure, Google Cloud, and Alibaba Cloud. For streaming, Netflix, Disney+, Hulu...

These are the best of times and these are the worst of times...

I'm a shareholder but they are hardly an organization to be admired (I have a coworker who's an amazon fanboy much like I am a GM fanboy or a Costco fanboy). I'm playing a game like a poster here did with the motor oil sold an a great price. Amazon has it, but won't fulfill the order. It will say expected Sunday. When Sunday rolls around, it says need authorization that you still want the product, or the order will be canceled. What competitor does this?

To me, that's like shorting a stock, the transaction goes the wrong way, so you're able to cover without ever actually doing so. I fully get that I'll never get the product, so I turn it into a game where I make sure I don't miss the window of saying I still want it. I didn't do anything wrong by ordering when it said "lowest price in 30 days" and had -xx% I just never heard of being able to cancel orders or even systematically do so, when they realize they are able to sell for much more, after the fact.

lol I do think as Bezos said, they will be out of business one day. I used to think they were perfect up to about 15 years ago. But I can name multiple transactions that were wrong and I needed to chat customer service, and actually argue, to get things corrected. Yes we are also Prime members.

 

[John105]

You can say that on just about anything. Want to start your own oil company? Coast to coast grocery stores? Credit reporting agency? Try starting another ICE car manufacturing business-the list goes on.

See how it works out......it's the day of big business-it is what it is.

I had even heard almost 10 years ago that many family owned car dealerships are looking to exit the market, and one means is to sell to the chains like Penske, Autonation, etc. At that time, there was a family one expanding--brother was a catcher for the Mets. That in itself is a business that figures out new ways to make money if you ask me. Last time I set foot in a new car dealer was to order a GM in late May, and I saw they were charging 3% to use a credit card.

 

[BISCUT]

There are those who feel that way. I am not one of them. Opportunity abounds!
Does tech play hardball? Sure. Go big or go home.
There's always been crime in business; heck everywhere, right?

Thinking Amazon is restricting another company from doing business shows limited understanging. Do you think I should be able to tell Amazon what to sell or not sell? That's silly. Amazon has no monopoly; here's a quick list of their competitors: eBay, Walmart, Target, Microsoft Azure, Google Cloud, and Alibaba Cloud. For streaming, Netflix, Disney+, Hulu...

These are the best of times and these are the worst of times...

Ologopies are not illegal, but the collusion that often occurs sure is. When controlling interest can be traced to one of three massive corporations, BlackRock, Vanguard, & State Street, I have to seriously doubt the justification for the wink and hey, that's just business.

Recent DOJ antitrust litigation involves Google for monopolizing digital advertising; Fed Trade Commission is suing Amazon for deceptive Prime enrollment and cancellation practices. Just two examples. DOJ is actively investigating Nvidia, Microsoft, and OpenAI for antitrust litigation as well.

 

[SC Maintenance]

Ologopies are not illegal, but the collusion that often occurs sure is. When controlling interest can be traced to one of three massive corporations, BlackRock, Vanguard, & State Street, I have to seriously doubt the justification for the wink and hey, that's just business.

Recent DOJ antitrust litigation involves Google for monopolizing digital advertising; Fed Trade Commission is suing Amazon for deceptive Prime enrollment and cancellation practices. Just two examples. DOJ is actively investigating Nvidia, Microsoft, and OpenAI for antitrust litigation as well.

Wildly entertaining that Jet Blue couldn't merge with Spirit because it would reduce competition in the "low cost flight" market? One or both are likely destined for liquidation now - there will be no low cost flight market.

But these big tech companies can literally buy any company they want and hoard whatever intellectual property they had.

Laughable. Money talks.

 

[GON]

Ologopies are not illegal, but the collusion that often occurs sure is. When controlling interest can be traced to one of three massive corporations, BlackRock, Vanguard, & State Street, I have to seriously doubt the justification for the wink and hey, that's just business.

Recent DOJ antitrust litigation involves Google for monopolizing digital advertising; Fed Trade Commission is suing Amazon for deceptive Prime enrollment and cancellation practices. Just two examples. DOJ is actively investigating Nvidia, Microsoft, and OpenAI for antitrust litigation as well.

Warren Buffets Berkshire Hathaway has the means, without pain or risk to their organization, to buy every gasoline refinery in the U.S. today, right now.

We can call that capitalism.

Now if the USG removes all federal, state, and local restrictions to build a refinery, and no regulations, no zoning restrictions allowed, etc--- we can also call that capitalism.

But one can't have it both ways, lobby for regulations that have barriers to entry and restraint of trade and then call it capitalism. Nobody has done a better job of overall protectionism, protection from liability, restraint of trade, and barrier to entry than high tech. And yet one puts hi tech and capitalism in the same sentence.

 

[GON]

Wildly entertaining that Jet Blue couldn't merge with Spirit because it would reduce competition in the "low cost flight" market? One or both are likely destined for liquidation now - there will be no low cost flight market.

But these big tech companies can literally buy any company they want and hoard whatever intellectual property they had.

Laughable. Money talks.

Jet Blue and Spirit didn't merge because Jet Blue didn't pay the piper. Had nothing to do with anti-trust. It had to do with the big three now having a fourth to compete with.

A great case can be had on the US Air buyout of AA. DOJ challenged the buyout, and amazingly DOJ looked the other way once a handful of elected officials had certain benefits for their district/ state. Thought the DOJ was protecting the US citizens holistically, but looked the other way once a few pipers were paid.

 

[CKN]

I had even heard almost 10 years ago that many family owned car dealerships are looking to exit the market, and one means is to sell to the chains like Penske, Autonation, etc. At that time, there was a family one expanding--brother was a catcher for the Mets. That in itself is a business that figures out new ways to make money if you ask me. Last time I set foot in a new car dealer was to order a GM in late May, and I saw they were charging 3% to use a credit card.

Many merchants-especially restaurants are starting to add a credit card fee. Those fees to the merchants continue to escalate. I get over $1,000.00 rebate back each year on my Costco card. Somebody is paying for that.

 

[PandaBear]

Based on what I have seen in most places. The typical, most competitive situation in any market tends to be having 3-5 suppliers, vendors, manufacturers, etc. When you have fewer than 3-5 suppliers they either slack off and stop improving, raising prices just because they can, or they start cutting qualities for more profits. When you have more than 5-7 suppliers some of them would not make it and start losing money and go out of businesses, being acquired in a downturn, etc.

Human has always been consolidating as our civilization advances since stone age. There is no going back. This is how we ended up able to afford all the technologies by sharing it among everyone in our civilization. Imagine everyone has to R&D a powerplant for their own village and home grown their own computer chips, we will probably still be in bronze age.

New companies are created all the time though, typically during hyper inflation era when money is cheap and must find a way to invest against inflation, and asset prices are already over the roof. New products and services have to be created to balance out the boom, some will not make it, but some will, and become the new leaders in the economy. If you look at how technology and monetary supply boom at the same time you will see the correlations.

 

[PandaBear]

But these big tech companies can literally buy any company they want and hoard whatever intellectual property they had.

Not always. Semiconductor companies tried to merge and often times got rejected, and tech companies tend to only merge between big and small, instead of 2 mega size companies with monopoly power. They tend to not do that because valuation of a leader is typically too high and once merger happen the buyer would end up collapsing financially in 3-5 years (I've worked with a few of them).

IP is a tricky subject because without IP you will have Chinese copying everything and allowed to sell in the US. Sure they copy but never the best ones we can create due to sourcing or talent issues (you will never be ahead of someone you copy from). If you look at how hard it is to create new stuff you will see why many would rather keep it trade secret instead of patenting their domain knowledges. The risk is high especially when the result may not be guaranteed. Billions can be spent and then the market direction change and you have to write off the investment for no gain.

 

[SOUNDMAN5000]

I for one hate Walmart with a passion!

I find I can actually tolerate the small local neighborhood market but my normal Walmart requires medication before I can enter.

My issue is not as much the public shoppers ( we have all seen the website People Of Walmart ) but my issue is the employees, management, upper management, IT's the "CULTURE" of Walmart STAFF / Management best I can tell.

It can't be the low employee pay staff receives but somethings else. As example my local Chick-fil-A employees make less $$ than the Walmart employee but when I walk into a Chick-fil-A I'm greeted with a smile and or if I say thank you I always get a "my pleasure" ( must be required in the employee handbook) If I say thank you at Walmart I get a blank stare. I even have one nice Chick-fil-a lady that if she is working will walk out from behind the counter and give me a hug and each of my family members a hug!

Chick-fil-A just has a warm vibe with happy smiling people, every time, ALL THE TIME! Those employees are super busy, over worked, standing outside to take an order in the hot and cold but doing it with a "my pleasure" and a smile!

I have known 1 or 2 Walmart employees over the years that were nice folks but thats an exception.
When I shop Walmart the stockers are always blocking the isles with pallets of China Junk most will have ear buds in and won't say a word and simply expect me to move out of the way of his pallet of more crap headed straight at me! Now that Walmarts are no longer open to the public 24 hrs ( Thanks covid ) why is 3rd shift not used for stocking?

I needed some help in electronics and in the middle of the sale the girl looks at me and stated "its time for my break" grabbed the item out of my hand, locked it up and walked off and left me standing.

The outside benches at the front doors are always filled with many employees smoking so a customer must walk through a cloud of smoke to get in the front door. ( Im an ex smoker and thats just bad management to allow such ).

In general I like to think of myself as a nice friendly guy. I find "people" interesting. I make a point to always ask anyone I come across, With a Hello and or a "So, how is your day" as it always opens the door to a smile or some friendly conversation ( I'm from the South, Mama taught me to be nice).

But when I ask that question to a Walmart cashier I normally get a frown, or I may get " I get off in an hour i'll be fine then".

One lady didn't hear my question correct and totally lost her mind, She clearly had troubles so I just paid and walked out.

$hit and $hit attitude runs down hill... Something MUST be very wrong at the top or the middle as the Walmart employees you can tell hate the job and hate life, Its sad when you have the Chick-fil-a folks ( as just one example ) making less money but are happy to be alive.

I avoid Walmart at ALL cost, I only visit as a very last resort.

 

[SC Maintenance]

Not always. Semiconductor companies tried to merge and often times got rejected, and tech companies tend to only merge between big and small, instead of 2 mega size companies with monopoly power. They tend to not do that because valuation of a leader is typically too high and once merger happen the buyer would end up collapsing financially in 3-5 years (I've worked with a few of them).

IP is a tricky subject because without IP you will have Chinese copying everything and allowed to sell in the US. Sure they copy but never the best ones we can create due to sourcing or talent issues (you will never be ahead of someone you copy from). If you look at how hard it is to create new stuff you will see why many would rather keep it trade secret instead of patenting their domain knowledges. The risk is high especially when the result may not be guaranteed. Billions can be spent and then the market direction change and you have to write off the investment for no gain.

Only one I can think of in the last 5 years was NVDA trying to buy ARM? You know of others? Meanwhile AMD bought ZT, microsoft bought activision and Github, and there is a plethora of others.

Meanwhile Albertsons couldn't merge with Kroger - because they would be bigger than Walmart - was literally the reason given. "they would be the biggest grocery Chain"??? Someone has to be biggest. Not like Walmart is going away, nor Amazon / whole foods, etc. Groceries are regional anyway. We should pull a standard oil and break up Walmart?

@GON is correct. Its whomever greases the proper skids. Its why you saw all these CEO clowns handing out millions to be able to stand around at inauguration. Doesn't matter who is being inaugurated.

And for the record we 100% agree on IP and the CCP - which is why US companies should be banned from making anything in China involving IP. As soon as they make it in China it should be public domain, because the Chinese will copy it for sure anyway.

 

[Jeep_Riot]

There’s no better source of entertainment than Walmart on a Saturday night.