Re: [CANSLIM] KMart vs Enron

From: Spencer48@aol.com
Subject: Re: [CANSLIM] KMart vs Enron
Date: Tue, 22 Jan 2002 16:01:51 EST

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Katherine:
 
        In my opinion, you are absolutely right.  They may both be 
businesses, 
   but they are two entirely different cases.  
 
        K-Mart follows Schumpeter's paradigm of "Creative Destruction", ie. 
She 
   just couldn't compete, and as Schumpeter lays out:  Even though an old 
   established business goes down, it is necessary; just as it was necessary 
for 
   the horse and buggy to make way for the horseless carriage.  If Capitalism 
   didn't allow businesses and people to fail ideas would not be tried, and 
   successes could not be achieved.  
 
        Enron is not a case of "Creative Destruction" at all, but rather a 
case 
   of Creative Accounting-which I hope leads to the destruction of all those 
   involved in Enron's shady practices (the main progagonists, and those who 
   helped to cover it up-viz. Enron's auditiors and accountants).  
 
   In a message dated 1/22/2002 11:52:27 AM Eastern Standard Time, 
   kmalm@earthlink.net writes:
 
   << I see a biggest difference in the ENE vs KM story as a lesson in 
   capitalism. That is, when a business becomes redundant or has lost its 
   strategic advantage, it disappears. I'm sorry for the KM shareholders, but 
   KM's inability to buck up and smell the market before it was too late has 
put 
   it where it is today. WMT redefined discount retailing, TGT created a 
   targeted demographic twist, NDN and DG segmented and subdivided the "big 
   store" into small local stores reminiscent of the old 5 and dime, BBBY and 
   LIN created a unique niche, etc. I'd go to KM to buy Martha Stewart 
goodies, 
   but I don't even know where there's a store in town! Bad locations, bad 
   strategies, bad execution, didn't "own up" to the problem until it was 
many 
   years too late. Bye-bye KM.
    
    Katherine >> >>

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