October 14, 2007

Why Wal-Mart is Getting Into Tech

So Wal-Mart has been selling computers for some time now, they also sell TV and others gear. Now they're going to start selling satellite broadband from Hughes and rumor has it that they might start selling installation/repair type services soon as well.

Why?

Wal-Mart, must continue to reinvent itself and add as many services, that make sense for it, as it can. People buying fancy TV's often don't know how to put them together.

Best Buy doesn't have this problem as it has an army of techs to send to someoen's home or business to do the installation. Wal-Mart wants into this market reports Business Week (the newly designed Business Week)

BW writes But Wal-Mart, which will provide satellite broadband in 800 stores, could make the service more appealingóand give existing providers cause for concern. Whenever Wal-Mart enters a new market, it tends to push down prices and squeeze out competition. Consider what happened when Wal-Mart began offering sub-$1,000 flat-panel TVs. After trying to match these prices, rival Circuit City (CC) had to close 70 stores (BusinessWeek.com, 4/23/07) and lay off 3,400 employees earlier this year. CompUSA had to shutter more than half of its stores.

What does this mean to you?

Having Wal-Mart help you with your home tech is fine - maybe.

But for your business stick to your proven and tried and try local technology consultant or other expert such as CDW or Dell. Best Buy has some good geeks, I know them, but be careful which geek is sent to your business. Make sure you get a competent geek.

Read the BW article here.

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