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History of walmart case study
Conclusion about walmart history
History of walmart essay
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Wal-Mart’s identity is misperceived because of reasons that many people are unaware of. This misperception successfully masks the retailer’s real identity. These reasons include, misleading advertisement, false claims, biased employment, transitioning from the blue-collar customer target by incorporating an upscale inventory, having a majority of Chinese made inventory, and manipulating customers.
The world's largest retailer is experiencing its worst-ever sales period. Many people today proclaim that Wal-Mart has just lost sight on the main goal, making money. While trying to attract more upscale shoppers, the retailer effectively turned its back on its blue-collar customers. Apparently, Wal-Mart does not care, and is attempting to deceive their usual, everyday customers by incorporating more upscale and pricy items into the inventory of the store (Duke 426).
Wal-Mart’s everyday customers do not want inflation of price to occur due to the infamous “rollback” scheme. At first glance, Wal-Mart's "rollback" pricing scheme seems appealing however, while the strategy drew in some shoppers with lower prices on select items, it was combined with a rise in prices on many other goods. This is severely aggravating for all customers who embraced Wal-Mart for its "everyday" low prices on all merchandise. This is a prime example of how this massive retailer deceives its customers into shopping at Wal-Mart (Lake, Mermin, and Wiefek 10).
The following is an interesting quote from Scott Edwards, a former Wal-Mart executive. This quote is significant because a former vice president of the massive store blatantly admitted to raising prices and alienating the blue-collar customer.
"The whole rollback thing spread like a cancer, and it i...
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...om our country and pouring it into China’s economy (Hicks 24-27).
In conclusion, Wal-Mart’s identity is definitely corrupt and everyone should think twice and analyze the truth behind the retailing behemoth before drawing conclusions about its identity. When Americans realize the real identity of the store, perhaps Wal-Mart will experience even less sales that it is today. It is obvious that the retailing giant is not what meets the eye.
Works Cited
Duke, Mike. "Next Generation Walmart." Vital Speeches of the Day: 425-27. Web. 29 Feb. 2011.
Hicks, Michael J. "What Is the Local Wal-Mart Effect?" Economic Development (2006): 23-31. Web. 28 Feb. 2011.
Jacobs, Ken. "Living Wage Policies and Wal-Mart." Feature Articles: 6-10. Web. 28 Feb. 2011.
Lake, Celinda, David Mermin, and Nancy Wiefek. "Re-branding Wal-Mart." Social Policy: 9-12. Web. 29 Feb. 2011.
Wal-Mart was not always the superstore that it is today. In the late 1940’s, Sam Walton took up the ownership of a Ben Franklin’s store in Newport, Arkansas. Even during the time before Wal-Mart, Walton was all about keeping prices low. It is every business’s objective to find the right balance between the prices of an item to meet the demands of the consumer in order to maximize revenue. How could Walton still make a profit while keeping the prices low for the consumer? Even while still operating the Ben Franklin’s store, he would purchase products from wholesalers and minimally markup the price. Where most retailers would rely on markup prices to gain profit, Walton would rely on pure volume in order to make up for the low prices (Frank, 2006). This was a smart decision on his part because it makes sense that if a consumer can get the same product for a lower price then they will purchase the cheaper product. It was not until 1962 that Sam Walton opened the first Wal-Mart store, also in Arkan...
A prior market firm used by Wal-mart (GSD&M) warned Wal-mart of the public image issues they were facing and had not addressed, even though they had been advised of them for over two years. GSD&M wrote in one review to the company that “sadly, after two years of empty rhetoric and ineffective publicity stunts, we now know that Wal-Mart has not only needlessly hurt its Associates and their families, but has pointlessly hurt the image and success that Sam Walton built.” (wakeupWalMart.com, 2007). Wal-mart has acted in a manner that blends with the theory of egoism. This theory “sets as its goal the benefit, pleasure, or greatest good of the oneself alone.” (wofford.edu, 1997). “Egoist use personal advantage…as the standard for measuring an action’s rightness.” (Shaw, 2008, p. 45). Clearly Wal-mart today is acting with interests geared toward their personal advantage and not considering the wreckage it is leaving all around them.
Wal-Mart has had a significant economic impact on the US, as well as the economies of countries that have relations with the US. Wal-Mart is the world’s biggest company of any kind, with 80 percent of the households in America purchasing something from the superstore; it is the nation’s largest retailer. Wal-Mart’s continuing price reduction has given Americans the advantage of being able to afford 15 to 20 percent more than they previously could. (Hansen) In a world governed by globalization and greed, competition has become rigid; as a result firms like Wal-Mart have utilized advanced marketing strategies to insure that they are on the ‘neck’ of competition, and are the core deciders of the market. (Ortega) However, Wal-Mart made decisions that were of a disadvantage to aspects of the economy, including the depletion on a small scale of Small Town USA.
Wal-Mart represents the sickness of capitalism at its almost fully evolved state. As Jim Hightower said, "Why single out Wal-Mart? Because it's a hog. Despite the homespun image it cultivates in its ads, it operates with an arrogance and avarice that would make Enron blush and John D. Rockefeller envious. It's the world's biggest retail corporation and America's largest private employer; Sam Robson Walton, a member of the ruling family, is one of the richest people on earth. Wal-Mart and the Waltons got to the top the old-fashioned way: by roughing people up. Their low, low prices are the product of two ruthless commandments: Extract the last penny possible from human toil and squeeze the last dime from its thousands of suppliers, who are left with no profit margin unless they adopt the Wal-Mart model of using nonunion labor and shipping production to low-wage hellholes abroad." (The Nation, March 4th 2002 www.thenation.com/doc.mhtml?i=20020304&s=hightower).
The success of Wal-Mart has yielded admiration and sometimes condemnation from numerous stakeholders. While some people applaud the retail giant for improving the living standards of citizens, creation of jobs, and improving the welfare of its employees, others argue that the retail giant has disrupted communities, brought down small retailers and compromised the living standards of
Consumers want more for their dollar and Wal-Mart has centered their focus on this idea, and has not apologized for that fact. In fact, Wal-Mart’s sole existence relies on the consumers search for the lowest priced goods.
Dicker, John. The United States of Wal-Mart. New york: Penquin Group Inc., 2005. 21-59. Print.
Canning, Kathie. “Cover Story.” Art of Transformation: Walmart’s betting on a revamped Great Value lineup—and many other strategic changes—to keep the momentum going post-recession. (Aug. 2009): 20-26. Small Business Resource Center. Web. 5 Nov. 2009.
Today Wal-mart has a higher GDP than the entire country of Switzerland, but don’t worry they’re pretty neutral about it. But there has also been news about how they treat there employees. In 2004 an article was released entitled Everyday Low Wages: The Hidden Price We All Pay for Wal-Mart, and soon after Washington got involved. The bad publicity took a toll on Wal-mart and in fact is still today, Maryland passed a law in January, 2006, that said larger employers, such as Wal-mart, must spend at least 8% of their payroll on health benefits for their employees, and now many other states have followed suit. The bad publicity also made it so 8% of customers shop elsewhere because of what they’ve heard, this has caused lower expected sales around the holidays during 2004, and 2005. Some things they’ve done is in 2006 they paid employees on average 9.36 dollars, while other major retailers like Target and Sears pay on average 11.08 dollars. While this can be easily denied by Wal-mart, another way they have gained bad publicity is from something called off-the-clock work. If they had not finished their job they had to clock out and then still finish their job, meaning they wouldn’t get paid for
Within an excerpt from, “The United States of Wal-Mart,” John Dicker explains that Wal-Mart is a troubling corporation. Dicker begins his article by discussing why the store is so popular within the news in an age of global terrorism, coming to the conclusion that Wal-Mart has a huge scope in the United States and that it has more scandals, lawsuits, and stories than any other supercenter. Continually, he goes on to explain that Wal-Mart outsources jobs and their companies demands makes it hard for employees to have livable wages and good working conditions. Furthermore, Dicker addresses the claim that Wal-Mart provides good jobs, by destroying this perception with statistics showing how employees live in poverty and that their union scene
...ir employees without their knowledge at all. Because of their prices being low, wage is even lower to make an over decent profit. 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.
Mallaby admits Wal-Mart can treat their employees and other retailers unfairly, but as a result everyone can share in the 50 billion in savings that American shoppers consume annually. The pay that employees get is the price they must pay for low priced merchandise. Because of the minimal pay to employees, Wal-Mart strengthens its’ consumer buying power. Giving the American shoppers the savings they need, Wal-Mart’s has ultimately been them successful. Wal-Mart has potentially wiped out the middle class as an employer, but the employees can now work and ...
Roberts, Bryan. Berg, Natalie. Walmart: Key Insights and Practical Lessons from the World's Largest Retailer. Kogan Page Limited, 2012. Print.
From this, it is clear that not everyone is a fan of the company. But where are this perspective coming from? It is just as likely for them to be from a biased outlet as the information they’re presenting being false. However, these perspectives can be easily counteracted by opposing ideas. One of which being the author stating the so-called “investing over $2.7 billion in wages” plan. Which I can confirm is true. In addition, since this plan was introduced in 2015, it has had a positive impact on the companies sales both in stores and online. The 200 training centers opened in 2015 as mentioned by the author, was a positive implementation in order to increase the minimum hourly rate. Before of which, had been a common complaint and issue associated with the company. Not only this, but there were endless complaints made about the company’s employee treatment, but it seems as though Walmart has acknowledged these complaints and in recent times has taken a step in the right direction. The author had not addressed much factual information regarding its suppliers and rather the “goals”
"Wal-Mart: The High Cost of Low Prices." Top Documentary Films. Web. 8 Aug 2011. .