Essay on Hello Walmart

1026 Words Nov 22nd, 2012 5 Pages
Hello, Wal-Mart?

Ashford University
BUS644 Operation Management
Dr. Ronald Beach
November 26, 2011

Hello, Wal-Mart?
It is very common for everyone that lives in a small town to get all their groceries at Wal-Mart. During the last 50 years of creation, from a small town on Arkansas, Wal-Mart became the biggest retail company of the world. At this time, this company is one of the major employers of the world and has more than 4,000 stores just in America. It is very difficult for a small business to compete with this company. Now before going forward, it is very important to understand how Wal-Mart operates. The main strategy of their operation is getting the cheaper supplies and sells their products a very low price to the
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Small businesses will be obligated to reduce their price to the minimum if they want to compete. All the money that small businesses will generate goes to local banks and stays in the community; in the case of Wal-Mart, this money goes to the main banks in other towns or cities, and the bottom line is this money does not stay in the area. According to the Institute of Local Self Reliance as Wal-Mart expanded small business retails dropped more than 39% and many small businesses are now closed. Let’s imagine this town a few years later with all these small business closed and for any reason Wal-Mart has to leave the town. The consequences will be catastrophic. Another point to take in consideration is the possibility that Wal-Mart is doing a monopoly of the sales in the small towns. With their aggressive campaign of reducing prices to the lowest minimum, and disappearing small businesses, they are obligating the consumers to only go to Wal-Mart for their needs.
The disadvantages from the town residents and the residents of nearby towns are also several. Let’s start to mention the impact of a new Wal-Mart store in the life of these residents. Earlier it was mentioned how small business were, in many times, obligated to close. These issues have a direct impact in the life of the residents, since these small businesses contract local people. People are forced to, in many cases, to leave the town because they cannot afford the costs of living.

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