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...

What's Bad for G.M. Is . . .

Contributed by mm | June 12, 2005 6:13 AM PST





A good portrait of what capitalism is really is: only the fittest will survive.

From New York Times:

In the 1950's, General Motors had 46 percent of the American auto market, Ford and Chrysler 44 percent, and everyone else combined just 10 percent. Today, G.M. sells 27 percent of the cars bought in America, Ford and DaimlerChrysler combined sell 32 percent, and other automakers add up to 41 percent.

...

Pop-culture economics assumes that competition crushes the little guy, but in practice it's often the big enchilada that gets eaten. A T& T was besieged by competition and now barely exists. ABC, CBS and NBC have been pecked down by cable stations. Sears and Kmart, even combined into a single company, are shadows of their former selves, with falling sales and far fewer locations. In recent years, McDonald's and Microsoft have seen flat or faltering market share, as more nimble competitors move in. (Subway is close to passing McDonald's for total outlets.) How long can Wal-Mart, the world's largest corporation, maintain its invincible position? Target and Europe's Tesco are giving it Wal-Mart fits.

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