How Does Walmart Affect The Economy

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Without limiting the overbearing market share of Walmart, small local corporations would be unable to compete, thus stunting their growth and the growth of the economy. The market share of a corporation is crucial in influencing neighboring enterprises. For example, the emergence of a Walmart in an underdeveloped area can help them grow tremendously, but the emergence of a Walmart in a well-developed area would simply hurt the existing enterprises by replacing them. In fact, according to Raymond Catala from WordPress, “Walmart is the leader in the market holding 63.60% of the market share, followed by Costco, Meijer, and BJ Wholesale, which have 17.50%, 3.60%, and 2.7% market share respectively”. Currently, Walmart holds a large percentage of the market share as they have expanded tremendously in the past couple …show more content…
In these cases, the responses would simply prevent them from growing further, but will not necessarily set them back. Even though the economy would affect large, medium, and small companies, larger corporations would still be profitable while small corporation struggle to survive as bankruptcy approaches them. In addition, small businesses are unable to compete with overbearing corporations like Walmart as they naturally offer a greater diversity at a lower price because of their size and power. The emergence of a Walmart in a local area is detrimental to many small businesses since a large market share typically leads to a greater diversity of goods and services, thus making it extremely difficult for smaller corporations to compete. In fact, Badal, Sangeeta Bharadwaj from Gallup states how diversity is crucial in the goods and services of the corporation. However, it is also important in the corporations supply chain, as diversity would decrease the extent of any disruptions within the supply

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