Bruce Springsteen

1. From a values perspective, did Springsteen make a poor decision in giving Wal-Mart an exclusive deal on the distribution of Greatest Hits? Explain your answer.

Yes, that it was a very poor call on Springsteen part. Bruce Springsteen has a very strong image that he enforces in his music. Bruce sent out an image and kept that image strong due to the fact that he is a blue collar worker. He gave the right to Wal-Mart the sole rights to release a 12-track anthology of hits at the discount price of $10 each. Springsteen says Wal-Mart album deal was mistake because Wal-Mart refuses to recognize unions, and has been criticized by the Human Rights Watch for its treatment of low-wage staff. Springsteen the Champion of America's blue-collar workforce regrets giving anti-union retailer sole rights to release anthology of hits.

http://www.guardian.co.uk/music/2009/feb/01/bruce-springsteen-wal-mart

http://lafiga.firedoglake.com/2008/12/24/wtf-springsteen-cd-exclusively-at-walmart/

2. From a business perspective, what are the pros and cons of an exclusive distribution deal such as the one between Springsteen and Wal-Mart?

The pros and cons is that Wal-mart is very well known for its great low rock bottom prices. Also, the fans of Springsteen can "only" buy this item exclusively at Wal-Mart. This means if you want to buy it the customer will have to find and travel to the Wal-Mart to purchase the item. Many people shop at either the original or the super store Wal-Marts in order to get the best price for the product that was being sold. Due to the fact that Wal-mart and Springsteen are very popular, huge store they will have no problem selling the records. The end result is that both parties Wal-Mart and Springsteen will both make money. However, Wal-Mart's history of squashing Labor is as long as Springsteen's history of supporting it. Wal-Mart employees cannot become unionized. Wal-Mart workers often live far below the poverty level, according to the UFCW (United Food and Commercial Workers) program "Wake Up, Wal-Mart."

http://craig-sanders.suite101.com/bruce-springsteen-signs-deal-with-walmart-a86672#ixzz1exCAlr5b

http://www.ufcw.org/press_room/index.cfm?pressReleaseID=450