Thursday, November 12, 2009

Wal Mart

As companies grow, they eventually growth slows for example Wal Mart. The Wal Mart story has been told all that awaits is the end. there is very little money to be made in Wal Mart Stock. Why? Its to dam big.

The solution is to spin Wal Mart off into hundreds if not thousands of small companies. WalMart would own all the shares and they would trade on the market both individually and collectively. Employees and customers would be portioned shares in the spin offs as to the viral capital model. It would include units of stores, marketing, purchasing, HR etc. Lets take the HR division. It would charge a fee to all of the stores, the stores would all get stakes in the Wal Mart Marketing Company based on its use. Since viral marketing is based on free markets any of the stores could drop the Marketing division if its not up to snuff, but its really in their interest if it succeeds. This would weed out the ineffective units of Wal Mart or bring them up to snuff. It would increase efficiencies by reducing waste full bureaucracy. In the race to lowest prices the eventual result is bankruptcy or near nil profits it effs up a lot of people and those that work there become low wage slaves at the bottom of the pyramid and overpaid dictators at the top.

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