Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Walmart Competitive landscape
Walmart competition analysis
Walmart competition analysis
Don’t take our word for it - see why 10 million students trust us with their essay needs.
On July 2, 1962 Sam Walton opened up the first Walmart in Newport, Arkansas. Now Walmart has become the most dominant retailer in the United States. Walmart is continuing to expand around the world and become so superior that its competitors are being driven out of business. Furthermore, Walmart is taking jobs away from Americans by outsourcing to China. Also, some Walmart employees believe that they are not getting paid well enough or receive proper benefits. Walmart is bad for America due to driving all of its competitors out of business, outsourcing to china, and low wages. An issue surrounding Walmart is that the company is driving its competitors out of business. Some argue that the consumer has freedom to shop wherever they would like. …show more content…
For example, some “In a free country, consumers have the option to shop wherever they choose” (Hoeing 47). This is not Walmart’s fault because no one is pointing a gun to their head and forcing them to shop at Walmart. The consumers decide to spend their money at Walmart instead of at small businesses or other big name stores like Target, Costco, or Walgreens. On the other hand, some believe Walmart’s low prices do not give their competitors a chance to compete with Walmart. Furthermore, “For every Walmart supercenter that opens in the next five years, two other supermarkets will close” (Long 103). Due to Walmart expanding into new areas, it is causing its competitors in that area to go out of business, which gives them total control over that area. In addition, Walmart is able to drive its competitors out of business due to its very low prices that other businesses cannot match.
Walmart’s competitors are not able to match its prices because Walmart outsources to China. Walmart outsources to China in order to make cheaper goods at lower costs, which creates an advantage for the business over its competitors. Even though outsourcing makes Walmart’s goods cheaper it has a negative outcome in the United States. “Chinese workers getting pennies per day, sweating to keep Walmart’s shelves stocked with cheap clothing” (Mallbaby 622). These low wages are only benefiting Walmart, outsourcing is hurting American because it is taking jobs away from Americans. Secondly, it is hurting businesses that do not outsource to foreign countries because they have higher operating costs which means the prices for its products will be higher compared to …show more content…
Walmart. There has been an argument on whether Walmart employees have been getting fair wages and benefits.
Some believe that Walmart does offer attractive pay and benefits to its employees, “Full-time workers receive benefits that include competitive wages, profit sharing, 401(k) plans, paid vacations, life insurance, a discount card, medical coverage, disability insurance, scholarship bonuses and child care discounts” (Hoeing 47). Full time workers seem to receive competitive wages and good benefits. Also Walmart is raising its wages in order to satisfy its workers. “The wage increases and other programs will cost the retailer about $1 billion” (Ziobro and Morath A2). By Walmart increasing its wages to $10, it shows that the company cares about its employees and are willing to take a big financial hit to ensure the satisfaction of its employees. On the other hand, some believe that Walmart wages are not enough to live off of or to support their families. For example, according to a current Walmart associate that is considered “high paid” named Jennifer McLaughlin, “the way they pay you, you cannot make it by yourself without having a second job or someone to help you, unless you’ve been there for 20 years or you’re a manager” (Olsson 607). McLaughlin does not believe that she is able to provide for herself alone with the pay she is receiving from Walmart and she is supposedly considered high paid as well. Walmart has had a history of treating its employees unfairly, for example,
“Some 40 lawsuits in 25 states accuse Walmart of denying overtime pay to those who have earned it” (Garten 24). Walmart is having its employees work overtime but they are not receiving the proper pay so the employees are beginning to sue for their unfair treatment. Lastly, even though Walmart has some benefits like low prices, variety of goods, and many job opportunities. Although it may seem like Walmart is good for America, it really is not helping this country. For instance, even though Walmart offers a good amount of jobs at its supercenters, it could offer so many more if they did not outsource to China. Walmart is able to have the lowest prices on the market because they outsource to China, which allows them to pay its workers pennies a day for labor. As a result of this, Walmart’s competitors cannot match Walmart’s prices which drives them out of business. Furthermore, Walmart employees feel that the wages they receive are not enough to support themselves and their families. To conclude, Walmart is bad for America because of the company decision to outsource to China, drive competitors out of business, and its low wages.
Wal-Mart, a "Big-Box Retailer" employs more than 2.1 million associates worldwide and has two-thousand seven-hundred stores in the United States with many more in Argentina, Brazil, Canada, Central America, Chile, China, Germany, Japan, Korea, India, Mexico, Puerto Rico, and the United Kingdom, making Wal-Mart the largest retailer in the world. "Wal-Mart accounts for upward of 30 percent of U.S. sales, and plans to more than double its sales within the next five years" (Lynn 29-36). Why is Wal-Mart so successful, and is Wal-Mart actually bad for America?
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
With Wal-Mart being so outrageously huge in this short of time, I believe that it has not yet settled into their customers why Wal-Mart is so cheap. Wal-Mart will replace higher wage jobs with lower wage jobs and require taxpayer assistance to keep Wal-Mart employees out of poverty. Numerous studies reveal that, contrary to the company's PR, Wal-Mart does not create new jobs when it comes to town. Wal-Mart simply replaces higher paying retail jobs with lower paying ones and, due to its adverse impact upon local businesses, may actually cause a net decrease in job numbers. The factories in China supply their employees with a whopping three dollar...
It’s a place everyone knows, much like the post office or even city hall. Wal-Mart. That is where the oddity lies, in the fact that a retail store is just as well known as staples for towns across the nation; not to mention the fact that Wal-Mart isn’t just in the United States, but around the world. Founder of the billion dollar industry, Sam Walton, did expect success from his endeavor, but no one could have foreseen just how influential the retail store would be. Wal-Mart is an astonishingly successful business with humble beginnings, but may have a rocky road ahead in terms of social issues due to the treatment of employees and it's strong effects on the economy.
Few companies create as much controversy as Wal-Mart has done with its approach to maintaining high profits with low costs. Individuals either love or hate Wal-Mart. There are consumers who like the low prices and convenience of shopping at Wal-Mart. Supporters of Wal-Mart also laud the fact that the company creates multiple jobs for not just the individuals who are employed within the stores but also those who create the products that are sold in the stores. Critics of Wal-Mart have issues with the treatment of those individuals who work at Wal-Mart. Wal-Mart has a poor track record when it comes to Fair Labor Practices by giving low wages, bad healthcare coverage, and treats employees. Low wages, no benefits, irregular schedules, and unreliable hours are just some of the horrible working conditions most Walmart workers have to endure.
Walmart is bad for America, as some say. The Globalization essay that was handed out in class had many good points. It states that Walmart puts many smaller businesses out of service. A recent study by David Neumark of the University of California at Irvine and two associates at the Public Policy Institute of California, "The Effects of Wal-Mart on Local Labor Markets," uses sophisticated statistical analysis to estimate the effects on jobs and wages as Wal-Mart spread out from its original center in Arkansas. The authors find that retail employmen...
The simple question, is Walmart good for America. My classmates whose views differ from mine are more concerned with a few individuals that Wal-Mart may have had an adverse effect on. These people are only a small part of what makes up The United States of America, this question is for the greater good of the country not a few individual who need to better adapt to changing times. Wal-Mart is good for America, because it keeps us involved in world trade, sustaining our economy, the corporation is groundbreaking constantly, applying new innovations and efficiencies, and it keep the interests of the consumer to heart.
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).
Walmart is a company that can be seen from many different perspectives. Due to its vast size; it can be easy to identify its faults and environmental issues surrounding the company. However, they are well aware of these problems and criticisms and have made many efforts towards issues around the world. The motivation and desire Walmart have to improve the world we live in today can be seen through their treatment of employees, suppliers as well as their efforts towards the environment and other humanitarian issues. Given this, there is still endless resources on the web proving the company to be one of a negative burden on society.
While Walmart gives jobs to Americans all over the world, Walmart also takes them overseas to China where labor is cheaper. In order to keep their prices low for their customers, Walmart demands that corporations keep their prices or they will drop the company’s products. When the price resin increased in the mid 1990’s, Rubbermaid was unable to keep production costs down, so they increased the price of their products. This lead to Walmart dropping their products for a few years and Rubbermaid selling their American production factory and moving to China. Which caused them to become
The Wal-Mart Corporation is a multi-billion dollar low-cost retail organization, consisting of 6400 stores and 1.8 million sales associates worldwide. Wal-Mart’s influence on the retail world and the enormity of their corporate size is unparalleled. Wal-Mart can easily report sales of $312.4 billion dollars per fiscal quarter and net profits of $3.8 billion dollars. Wal-Mart promises her customers "Always low prices. Always!" and upholds this motto by providing low prices to her customers and high return on investment to her stockholders. One way that Wal-Mart has managed to maintain a competitive edge over other low cost retail giants and provide low prices is by cutting wages and by not offering too many company benefits to their employees. Full-time employee working at Wal-Mart only make $8 an hour, while only 45% of the workers can afford to be covered by health insurance. Wal-Mart also increase part time employees from 20 percent to 40 percent so that they do not have to cover all of their employees for health insurance . Although Wal-Mart may not provide excellent benefits to her employees, it successfully performs as a legitimate business operating in a capitalistic society. Wal-Mart upholds the primary fiduciary duty to satisfy her stockholder and follows free the market libertarianism model, which states that a business should not interfering with the free market. In a free market Wal-Mart has a direct responsibility to her primary stockholders rather than the employees of a company.
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
Few companies create such controversy as Walmart has done with its approach to maintaining low costs for everyday items. People either love Walmart because of this approach to keeping prices down or hate it due to the effects it has on the economy. There are a lot of arguments surrounding the minimum wage and employee rights at Walmart. There seems to always be a news article about some employee protest about the wages or how they are treated. Walmart is viewed as an enormous firm that does not take care of its employees because of its minimum wage, treatment of its employees, and how it deals with lawsuits.
Walmart has had a long-standing presence in America society since the middle of the 20th century, seen as a place to get everything done, Walmart has become a fixation in our society. From grocery shopping, to changing your oil and even filing your annual tax returns, Walmart is always there, everyday. Started by Sam Walton in 1962, it began as a small operation catering to a small Arkansas community. It was started on principles very similar to small local businesses in small towns. Today Walmart has gotten a different, darker reputation. On the surface, Walmart may seem like the solution to everyday issues. Low-income families are attracted to the low prices, and people who work odd hours benefit greatly from the 24 hours a day that many Walmarts are open. Lately, Walmart has also managed to be publicly recognized as a store that sells many of today’s green products, including organic food, environmental conscious cleaning products, as well as, paper products made from recycled paper. However, underneath all this, Walmart has a different side. Exploitation of its workers is widespread amongst Walmarts who do not belong to a union, especially in the United States. Wal...
The Wal-mart is the largest retail chain in United States and in the world. The wal-mart was founded in the year 1962 by Mr Sam Walton. It was originally named as Wal-Mart discount city in Rogers, Arkansas. At the time when the Wal-Mart stores started in the year 1962 it was focused only in small rural cites and town which had a population of 5000 to 25000. It was soon increased to 18 stores in 1969. In the next 30 years it had more than 4750 stores across 50 states in USA and 9 countries with $245 billion sales. It started its international operations in Mexico in the year 1991 and then it expanded it to different countries across Europe and Asia.