Umair Haque / Bubblegeneration
umair haque  


Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.

Wednesday, December 01, 2004

Limits of Hyperefficiency

Wal-Mart backlash begins - on the Street. That is, Wal-Mart takes a hit because it doesn't discount as much as expected.

Has Wal-Mart reached a hyperefficiency bound? I don't think so (and this doesn't mean it has) - the price floor will keep dropping - it's a just a discontinuous function. The real Wal-Mart backlash will begin when consumer preferences shift away from myopic evaluations of quantity - ie, give me the 'most' for my buck now - and towards a fuller evaluation of the consequences of hyperefficiency. It's happening slowly but surely.

A falling dollar and import substitution might help this trend hit the inflection point.

-- umair // 5:22 PM // 0 comments


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