Wal-Mart Effect
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Walmart became a game changer in the way U.S economy works particularly on its strategy to reach the market. Consumers, suppliers, retailers, manufacturers, jobs, wages, the overall culture of shopping, environment and the community, can feel Walmart’s impact. It prides itself on being the world largest company considering its broad and diverse reach.
The Wal-Mart Effect is a term used to describe the impact of the entrance of a major cost-cutting power on a local economy. This wall-mart effect comes from the way Wall-marts operates regarding low prices which increase consumers saving which in the long run drive away uncompetitive retailers due to their domination of the …show more content…
Besides companies are compelled to consolidate to match up the prices at Wal-Mart’s. Businesses are closing up while factories are collapsing due to the unfair competition that is thinning out the profits. Companies working with Wall-mart are forced to provide products at very low prices or go elsewhere meaning Wal-Mart and not the manufacturer control the costs. According to Fishman “Wal-Mart is brutally competitive” by sticking to its mission of low prices (Fishman, 2006). It is unfortunate that the whole society is impacted with the obsession for low prices. It is quite visible that local business and manufacturing companies are at the losing end due to the Wal-Mart …show more content…
It is because the public needs to know how Wal-Mart manage to maintain low prices and the consequences of having low prices to the society. An informed community is very influential in bringing change or influencing any system if consumers understand the cost of purchasing at Wal-Mart they are in better place to make good decisions.
Additionally, the text is beneficial to both policy makers and decision makers regarding the economy. Understanding how Wal-Mart operates is key to strategizing on better ways to ensure the negative does not exceed the positive impact. Policy makers should also review the trade laws to ensure that our economy and the population does not suffer losses. The issue of lack of accountability and information gap present in the company is very helpful to the management of the enterprise as they are now aware of the need to change their operation for them to be sustainable.
The survival of Wal-Mart depends on consumers largely. A client that understands that the price of shopping at Wal-Mart affects their lives eventually they will be more proactive in demanding for better practices in the company. Particularly understanding the unethical and moral implication of operations at Wal-Mart will influence consumer behaviour. However, this change might take some time. Eventually, Wal-Mart will feel the
Name
Institution
Instructor
Course
Date
Walmart became a game changer in the way U.S economy works particularly on its strategy to reach the market. Consumers, suppliers, retailers, manufacturers, jobs, wages, the overall culture of shopping, environment and the community, can feel Walmart’s impact. It prides itself on being the world largest company considering its broad and diverse reach.
The Wal-Mart Effect is a term used to describe the impact of the entrance of a major cost-cutting power on a local economy. This wall-mart effect comes from the way Wall-marts operates regarding low prices which increase consumers saving which in the long run drive away uncompetitive retailers due to their domination of the …show more content…
Besides companies are compelled to consolidate to match up the prices at Wal-Mart’s. Businesses are closing up while factories are collapsing due to the unfair competition that is thinning out the profits. Companies working with Wall-mart are forced to provide products at very low prices or go elsewhere meaning Wal-Mart and not the manufacturer control the costs. According to Fishman “Wal-Mart is brutally competitive” by sticking to its mission of low prices (Fishman, 2006). It is unfortunate that the whole society is impacted with the obsession for low prices. It is quite visible that local business and manufacturing companies are at the losing end due to the Wal-Mart …show more content…
It is because the public needs to know how Wal-Mart manage to maintain low prices and the consequences of having low prices to the society. An informed community is very influential in bringing change or influencing any system if consumers understand the cost of purchasing at Wal-Mart they are in better place to make good decisions.
Additionally, the text is beneficial to both policy makers and decision makers regarding the economy. Understanding how Wal-Mart operates is key to strategizing on better ways to ensure the negative does not exceed the positive impact. Policy makers should also review the trade laws to ensure that our economy and the population does not suffer losses. The issue of lack of accountability and information gap present in the company is very helpful to the management of the enterprise as they are now aware of the need to change their operation for them to be sustainable.
The survival of Wal-Mart depends on consumers largely. A client that understands that the price of shopping at Wal-Mart affects their lives eventually they will be more proactive in demanding for better practices in the company. Particularly understanding the unethical and moral implication of operations at Wal-Mart will influence consumer behaviour. However, this change might take some time. Eventually, Wal-Mart will feel the