The First Walmart Store

So Sam Walton decides he wants to take his company public. Although the company was in debt, its fundamentals were looking really strong. Besides he figured he could use the money generated from the IPO for the company's future growth.

So he shows up in New York, shows up at an investment bank.

"Hi. I am Sam Walton from Arkansas. I need to take my company public. Who do I talk to?"

The receptionist takes her to see that lone soul from Arkansas who happens to be working at that bank.

How Wal-Mart Got Started

Image via Wikipedia"In 1962, four new retailers were born. One called Kmart was started in Garden City, Michigan, another called Target was started in Minneapolis, another from Woolworth, the big name in retailing at the time, called Woolco was started, and the final one in rural Rogers, Arkansas, called Wal-Mart. Thirty years later, Woolco had met its demise and one of the other two was the largest retailer in the country. Surprisingly, the top retailer was the one from Arkansas."

The Guardian: It all began in a small store in Arkansas...: Four of the world's top 15 billionaires are from one family. ..... retail is a good place to be. Of the top 15 billionaires, nine made their money the old-fashioned way, by selling us clothes, food and furniture ..... together, the clan are nearly as rich as Warren Buffett and Bill Gates (the top two on the list) combined. ....... Sam Walton began his conquest of the world in 1945, with a loan of $20,000 from his father-in-law and a small variety store in Newport, Arkansas, where he established the practices that define present-day Wal-Mart: he kept prices as low as possible, stocked a wide range of goods, and stayed open longer than anyone else. His margins were small, but he sold large quantities, which meant he could bargain for even lower prices from wholesalers - policies that still drive smaller local stores out of business. ....... Even in his later years, when he was worth $24bn, he was famously frugal, opting for $5 haircuts (no tip), and cheap food at his local Wal-Mart. He drove an old pick-up and often borrowed money from his employees. And he was ruthless. "Some people try to turn it into this 'Save the Small-Town Merchants' deal, like they were whales or something that have a right to be protected," he wrote in his autobiography. But he was having none of it. "What happened was as inevitable as the replacement of the buggy by the car." When he died, in 1992, the state got almost nothing in taxes, because he had divided his wealth between his wife Helen, who died in 2007, and his children. ....... Wal-Mart employs more than 2 million people worldwide, meaning it has twice as many men and women in uniform than the US army. ...... A reporter for Fortune, strolling round Bentonville, Arkansas, was hard put to even find the offices from which their fortunes are run. ....... Rob Walton, company chairman (the CEO is a non-Walton, Mike Duke), worked in a small windowless room,
Image via Wikipedia 10ft by 10ft square ..... in fact, anyone who lives in Bentonville probably shops in Wal-mart for food, clothes, furniture and electronics, banks at Arvest, and, until recently, read a Walton-owned paper. They can drive down Walton Boulevard to watch sport at the Walton Arena. They can wander around the Walton Arts Centre, or go to the Wal-Mart Museum, where old Sam's office and pick-up are preserved exactly as they were the day he died. They can study at the Sam Walton business school, or fly from the Alice L Walton terminal of the airport.

Who Hired You?

Image via WikipediaSam Walton is an inspiration of mine. I find Walmart, Dell and the dollar pizza places fascinating. I admire those who can keep the costs down.

Sam Walton had plastic chairs at his Arkansas headquarters. And this was after Walmart had gone public, and Sam Walton was a billionaire already. His logic was obvious. If we buy expensive chairs, the costs get passed on to the customers. It made perfect sense to buy plastic chairs. When he traveled for business, he made a point to stay in cheap motels.

I read his autobiography a long time ago. It is a slim book, a great read.

Google: Poised To Be The Number One Software Company In The World

I am a die-hard fan of Google, have been since its inception. It keeps lifting you up. The most recent two lift-ups for me were, well three: (1) Gmail, (2) Google Scholar, and (3) Google Print and the news about Google digitizing some major libraries.

Google is like Wal-Mart; you walk into a Wal-Mart and you have seen their entire business model.

The idea behind Google print is monumental. It is going to transform the web. The web otherwise has been whistling along like a near empty vessel.

But Google has barely scratched the Google surface.

Let's extend the Google Print vision such that authors the world over, new and accomplished, could entirely skip the publishing industry. You are an author. You sign up and open an account with Google Print for free. You publish what and when you want to publish. All money you make is entirely through Google text-ad-click-throughs. Entire new books in all categories. There is no print version. And the complete text is online for readers for "free," kind of like shows on TV. The "price" on "books" will drop astronomically: they will be gone! No paper. No publishing company. No traditional marketing. This is nothing less than transforming the whole idea of what a book is.

Readers will also have the option to open free accounts. So they can bookmark books. And place bookmarks inside books, or take notes.

Extend that to articles. And desktop word processing becomes irrelevant, especially when people will have the option to have search-engine-protected documents also, or documents with limited circulation. You decide which Google IDs may view it.

The internet is but a fancy telephone: it is a communication tool that makes geography and more irrelevant. Makes socio-economic schisms less of a hassle. Heck, it lets you communicate with dead people through their books. You communicate with people who will be born after you are gone.

The Google Print idea extends to audio and video. For that you are talking new, bold hardware infrastructure just round the corner. An internet computer that you can buy for less than $100 that you could change like underwear if you wanted to. The point being to crack open the 6 billion mass: the more the total number of web surfers, the more money Google makes. The only thing the machine does is it takes you online, preferably at super fast speeds. Memory is a total non-issue for text-audio-video due to nano.

Text-audio-video-photo. Photos get "downloaded" straight from your camera to your online storage where you do all the editing. And all content generates revenue the same way.

See?

At that point Google becomes the number one software company in the world and keeps the throne for a few decades. IBM was a hardware company, that is why Microsoft came along as sexier. But MSFT is a desktop company, it is no dot com. Whereas Google is the sexiest dot com there is. That is why it will take over the lead.

Google is a freaking revolution!