Wal-Mart Reaches Outer Limit of Discount Model

Wal-Mart (WMT) issues lower guidance and the question becomes can they continue to cut costs and make money. President and Chief Executive Mike Duke is quoted as saying they are gaining market share everywhere in the world. Hey Duke if you have that kind of market power when will you make some money?

The management mind set seems to be on auto pilot. Cut Cut Cut. That’s OK when you are trying to get market share but eventually the model is no longer practical; you are just stealing from yourself. When you get into the value added business Wal-Mart has no clue