Oct 09 2010
Rivalry between Wal-Mart, Costco also extends to national politics
When we think of competition between rival companies, the idea of price wars and product improvement comes to mind. However, the executives at Wal-Mart Stores Inc. and Costco Wholesale Corp., competitors in the $76 billion US warehouse-club market, have taken their rivalry to a new level: national politics.
Wal-Mart, the world’s largest retailer, gives more money to Republican candidates than any other company while Costco chief executive Jim Sinegal, 68, is a Democrat who says Bush’s $1.7 trillion in tax cuts unfairly benefit the wealthy. He opposed the Iraq war and supports Democratic Senator John Kerry of Massachusetts for president. ”Wal-Mart is extremely strong in Republican strongholds; they are a red-state retailer,” said Amy Bonkoski, an investment adviser. On the other hand, Costco is stronger in Democratic states and is “a friend to labor”.
The differences are based on more than ideology: each retailer has a stake in the election’s outcome in areas from healthcare to the minimum wage to the way unions can organize workforces. All in all, competition is something that can’t be avoided but it’s the fact that some companies go through intense measures to ensure their position on top that raises other moral questions. Corporate espionage, hostile takeovers and unhealthy competition should be eliminated for healthy business practices and national growth.
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