WAL-MART CASE STUDY WAL-MART CASE ANALYSIS Impressions Wal-Mart is a company that leads its industry in numerous areas. The areas which impress are the accomplishments the company has made. “About 140 million people in 11 countries shopped at Wal-Mart …every week. More than half of American shoppers visited Wal-Mart at least once a month…an estimated 82 percent at American households have made at least one purchase at Wal-Mart” (Bianco, Zellner, 2003). Less impressive is the company being involved in over 6000 active lawsuits and what seems to be a proven track record of forcing out smaller business in the areas it locates to, putting many people out of work.
An article mentions “Walmart’s huge advantages in buying power and efficiency force many local rivals to close.” (“Long”103) Walmart can only see that they are going to make more profit they don’t stop to consider the local businesses they put out. The disruption Walmart is causing to small communities is cold hearted. In an article written by Jonathan Hoenig says “Wal-Mart hires workers on a voluntary basis, and right now 1.3 million Americans have willingly chosen to work there. They could walk out and leave at any time’’ (48). Hoenig makes it seem like it’s that easy to just get up and leave a job.
When Wal-Mart enters a new location it relies on bully techniques to weed out its smaller competition leaving consumers little to no choice but to shop as well as be employed at Wal-Mart. The majority of Wal-Mart employees opt-out of the health benefits package due to the high premium cost and large deductibles leaving them without coverage or seeking state aid. ("Store Wars: When Wal-Mart Comes to Town") Wal-Mart is the largest retailer in the world with over half of their employees averaging wages that are below the Federal poverty line for a family of four. Wal-Mart has become a household name with many positive attributes but they have been riddled with a large amount of negatives. Their motto of “Always low prices, always” have created soaring profits at the expense of their employees.
This gave the company a huge marketing advantage over its fellow retail stores within the same market. “Walmart’s everyday low price, or EDLP, strategy stems from these economies. It also helped the retailer garner market share from other companies by strategic pricing. It has strategic pricing through programs like the Savings Catcher, Save Even More, Ad Match, and price rollbacks. (Soni, 2015)“With the power and success that the company is able to harbor its fellow companies like Kroger, K-mart, and Target don 't even stand a chance.
After watching The Wal-Mart Documentary: The High Cost of Low Price, I am strongly against Wal-Mart in America because of several reason but will narrow it down to: the closings of small businesses, high crime rate, and discrimination against employees. Well how about a little fun fact: Wal-Mart makes millions of dollars every day and does little to nothing to help their community or employees make a living to support their families. The business motto of Walmart is all about low prices but at what cost? The Wal-Mart Documentary: The High Cost of Low Price, reveals the many chain of events happening when a Wal-Mart is built in a town, such as: small mom and pop shops closing their business because they can NOT compete with the “BIG HOUSE”, employees being discriminated by the color, race, and either not getting promoted or are being told to go on government funding because Wal-Mart doesn’t want to provide quality healthcare. In The Walmart Documentary, stated: “Wal-Mart cost taxpayers $1,557,000,000.00 to support their own employees” (U.C.
In the early 1990s Wal-Mart decided to manufacture products at a value rate to the consumer. Their Great Value brand is generic to major leading brands. Over the course of this Session Long Project I will discuss the product design Wal-Mart incorporate, provide background foundation of Wal-Mart’s decision for its development, and the different issues for developing the product, I will also discuss the Great Value product life cycle as it pertains to a large selection of products. As consumers demand for the Great Value brand increased Wal-Mart decided to rejuvenate the products. In “2009 at a time when families needed to make every penny count” (Wal-Mart Store, 2012).
Wal-Mart is a growing competitor to those who have enough trouble just surviving. It is easier for everyone just to back-off and let them do what they want, but they have taken advantage of that and the people do not like that. Besides all the points that I have stated, Wal-Mart has had to pay fines due to breaking Child Labor laws and Illegal Immigrant laws; fines up to $11.5 million for just those two types of laws. Wal-Mart is not good for this economy, for the people, and the company, in a whole, is criminal. If the people let Wal-Mart stay on the track it is on, the United States will not have anything but Wal-Marts.
It constantly improves the productivity of American retailing, encourages competition and outsourcing, provides quality items at a low cost, is a stepping stone for retail workers, and creates business opportunities for other companies. Voted “America’s Largest Corporate Cash Giver” by Forbes magazine in 2003, Wal-Mart is also very generous to charities around the world. Wal-Mart is not detrimental to our economy or our country. It is a fundamental puzzle piece that is merely a strong player in today’s neoliberal game of capitalism. Lets face it, the good old days when producers dictated what appeared on the shelves of stores is now over, and in place is a buyer-driven chain where the consumer dominates.
The world's largest retailer, Wal-Mart, is moving into Europe, and the UK is its second target after Germany. BBC News Online's Tim Weber looks at the secrets behind the company's success. The figures make the owners of corner shops and small retail chains shudder: Wal-Mart operates 3,601 stores, employs more than 910,000 people world-wide, sales amounted last year to $137.6bn (£85.7bn) - equivalent to a tenth of Britain's total economic output. Patrick O'Connell: The largest retailer in the world began life as a single store in Arkansas The company serves about 90 million customers every week and has stores in the United States, Puerto Rico, Canada, China, Mexico, Brazil, Germany, Argentina and South Korea. Where Wal-Mart treads, competitors tremble.