The Wal-Mart Effect by Charles Fishman
April 6th, 2008Title: The Wal-Mart Effect
Author: Charles Fishman
Publisher: Penguin (2006)
When I first decided to read The Wal-Mart Effect I was a little concerned. As I am sure you know, Walmart is not generally a place that people are neutral on. There are some pretty strong feelings about Walmart. Generally the Walmart haters are much louder and obnoxious…but they have the right to their feelings. I was concerned because I wasn’t sure if I was going to be reading a pro-Walmart book or an anti-Walmart book. Luckily for me (and all the other readers)…this book is incredibly even handed and neutral.
Fishman very evenly discusses the great things Walmart has done for business (redefining supply chain management) and also discusses the negatives (mistreatment of workers). I never felt that I was being attacked for liking Walmart or being preached to. Fishman just dealt in facts.
Fishman talks about how Walmart revolutionized supply chain management and cost cutting…which are Walmart’s most important contributions to the world. For example, he tells about how Walmart’s deodorant buyers saw how their purchases were stocked in cardboard packaging. They realized that it would cost less to buy the deodorant without the cardboard because they didn’t have to pay for packaging, didn’t have to pay the freight on the extra weight of the cardboard, and gave themselves extra shelf space. So they demanded the deodorant manufacturers stop using cardboard packaging. Pretty soon, all the retailers stopped using the cardboard. Deodorant prices dropped…and everybody wins. Well, except the cardboard manufacturers.
There is case after case of this type of situation happening…which certainly benefits the average consumer. There are also plenty of situations where Walmart’s never ending demands to lower costs forced companies to sell at paper thin margins…sometimes being forced out of business.
One interesting aspect of the book was how difficult it was for Fishman to get people to talk to him about Walmart. Current vendors are scared to say anything bad for fear of being cut off. Former employees don’t talk about it. Obviously current employees don’t say a word. Pretty much the only people he could get to talk to him were people who had no reason to fear Walmart and people speaking anonymously. The book really captures the fear that Walmart puts into their “partners”. Pretty interesting.
Then, of course, there are plenty of stories about underpaid workers, unfit foreign factories, etc… I don’t think this is necessarily the place to get into that. There are plenty of websites out there that make arguments for both sides.
Overall, I really enjoyed this book. Fishman wrote well enough that he was able to keep it interesting the entire time. I feel I learned a lot while reading it….both about Walmart and business in general. I highly recommend this book to anyone even remotely interested in the topic.
Rating: 4.5 out of 5
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April 7th, 2008 at 11:20 am
What an outstanding review! I want to read the book know…and I’m sure hubby will too.
Love the part that the book isn’t a play on emotions. Now to see if I can locate me a copy.
Thanks!
April 12th, 2008 at 7:10 pm
Adam,
It’s Charles Fishman writing, the author of “The Wal-Mart Effect,” and I really appreciate you taking the time to read the book, and to write such a thoughtful and engaging review.
And, of course, I’m glad you liked the book. You exactly captured my goal — which was not to tell you what to think about Wal-Mart, but to provide enough information so you could understand how Wal-Mart shapes the world, from deodorant to factories moving to China. Then you can decide what you think for yourself, of course.
Good luck with your continued reviewing. And for anyone who wants a taste of the book, a couple chapters are on line free at the book’s website:
http://www.walmarteffectbook.com
Charles Fishman
Author, “The Wal-Mart Effect”
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