Essay About Wal-Mart And Recent Years

Walmart Case Study
In today’s growing market, Wal-Mart is the largest retailer in the world. Wal-Mart’s
low prices have become very attractive within this ever changing economy. Consumers
are able to purchase a vast array of products and groceries in the same location. Also,
get their automobile serviced. It is considered a “superstore”. Wal-Mart has a domestic
and global presence that extends as far as China, where most of their products are
manufactured.
In recent years, arguments have been made that Wal-Mart is good for the
consumers of America but it isn’t good for American suppliers and small businesses.
While the low prices attract millions of people, Wal-Mart hurts small businesses by
making them produce materials at a lesser amount than they can afford. American
Suppliers suffer because they can’t compete with the low labor cost and/or price for
producing products in China. As a result, American suppliers either close or downsize.
Wal-Mart has gained a pricing advantage by reversing the traditional auction
process. The traditional auction process allows manufacturers to control the bidding for
Wal-Mart Stores whereas now manufacturers that want to sell their product(s) at
Wal-Mart must decrease their sales price which forces them to lower wages.
Therefore, the ability for small businesses to compete fairly, generate revenue, increase
employment opportunities and pride of ownership within local communities is
eliminated.
Overall Wal-Marts goal is to gain a competitive advantage by decreasing the costs
of their products. They have effectively and efficiently devised a strategy that will
generate an ongoing flow of revenue that may affect the progression of other
companies and employee retention. This strategy is not good for America.
In 2006, a study was conducted by the Center for Urban Research and Learning
(CURL) of Loyola University Chicago about the affects of retail stores in business
districts. It was proven that opening of a new Wal-Mart store on the North Side