What do you see as the driving force behind all the changes in power in South American countries?

n 1992 Wal-Mart passed Sears to become the world’s number one retailer.  How did Sears allow this to happen?  First, Sears suffered from the arrogant assumption that it was invulnerable, and then its leaders fundamentally misunderstood the key competitive dynamics in the market (which I refer to as the mindset problem), and allowed Wal-Mart to out-innovate them in three critical performance dimensions:  cost of goods, cost of distribution, and pricing.  In essence, Wal-Mart mastered one of the six critical forces that drive today’s economy, commoditization.

Commoditization, the inexorable pressure that drive prices downward, continues to be a formidable competitive force that is manifested in our times in many ways, from the Wal-Mart-ization of the world’s retail supply chain and the accompanying outsourcing of manufacturing to Asia, to upheaval in the retail grocery business, to the outsourcing of computer services to India, to the precipitous drop in the price of computing power, to the cheap air fares that we now enjoy.

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one was in america the other france

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