Is Walmart Good For America Case Study

Good Essays
1. What does the documentary “Is Wal-Mart Good for America” illustrate about the business environment at the time?

At the beginning, the business environment of Wal-Wart was based on quality and competitiveness. To develop its business, Sam Walton, the founder of Wal-mart was looking for low prices, and he decided to get cheaper imports from China. As Wal-Mart begun to grow its business, its environment changed; it forces suppliers and competitors to sell at their cheapest price. Nowadays Wal-Mart is one of the most successful companies in the world. However their slogan, ' 'everyday low price ' ', has a negative influence on the American economy.

2. What did you notice at the Wal-Mart shareholders meeting? Do you think this is different
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In the push system, suppliers or manufacturers make decision about products, but the pull system, allows retailers like Wal-Mart stores to have power over products. The pull system is more efficient than the push system, since the company can reduce waste, like the overlapping of orders. In addition, it saves time by using electronic tracking and ordering technology. For example, the retailers of Wal-Mart track sales of each product by scanning barcodes, and they automatically order to the suppliers what to produce, the number of products, and the price of products. Therefore, the power between retailer and supplier has been changed and shifted to the retailer. Now retailers of Wal-Mart pressure suppliers and force them to sell products at low price.

4. What is an opening price point? How does it influence sales?

An opening price point is the heart of Wal-Mart’s pricing strategy. Opening price points are the bargains of products which are advertised by the store. The low prices attract customers and often make customers think that every product in the store is sold at a cheaper price than ordinal price, but this is usually not true.
 Wal-Mart catches customers’ attention and raises the sales of products by successfully using the opening price point.

5. Wal-Mart started a campaign encouraging people to buy products that were made in America. What influence did this have on
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Outsourcing helps keep the cost of production low by getting cheaper imported goods or human resources in developing countries such as China, hence it help the everyday life of low-income customers. However, moving potential jobs to another country and destroying small American companies hurts the U.S. economy. It also leads lower wages and replaces those who working in American manufacturers with non-skilled retail labor. 
For example, Five Rivers Electronics which owned TV manufacture in America was severely attacked by Chinese imports.

7. How would you describe Walmart’s business model? Who do you think gains the most from Wal-Mart 's business model? Explain why.

I feel that Wal-Mart 's business model is really successful, but unethical.It 's low price business model destroys competition between American industries and increases the unemployment rate in America which hurts. Moreover, I think China gains the most from this business model. According to Ray Bracy, who is Wal-Mart 's vice president, Wal-Mart imports about $15 billion in goods from China each year. China exports millions of goods to U.S. and increases the trade surplus with U.S. Today, China is the largest producer in the world and many American companies depend on imported products made in

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