This is just an interesting article I read in Slate about the CostCo vs. Wal-Mart saga. The article does a good job summarizing the differening strategies.
The bottom line is that while CostCo. has not shown the high profit margins of Wal-Mart, it clearly has demonstrated a "slow but steady winsthe race" attitude, as the article mentions CostCo's long-term stock performance as solid and theoutlook is even slightly more optimistic than Wal-Mart's.
This comparison serves as an excellentexperiment and I actually think it provides evidence that government regulations that mimicked CostCo's benefit structure would not cause businesses to shut its doors or significantly hamper economic growth. (I don't have the graphs to prove it, but I think Ryan's graphs indicate precisely this point.)
Sunday, June 29, 2008
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Very interesting. Fairer forms of capitalism can function just fine.
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