Nike and Walmart

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In today’s world, Nike and Wal-Mart are two big corporations that play a vital role in many lives. They both started from humble beginnings and have become a big phenomenon not only in the United States, but globally as well. Through what I would call very smart business concepts both have been able to grow exponentially over the past few decades. Wal-Mart has been able to pretty much dominate retail while Nike has been able to pop up first in peoples mind when it comes to sports apparel. Wal-Mart’s idea of buying many items and selling them at lower costs than the competition has made them the most successful corporation today, and that most likely will not change any time soon. Nike’s unique way of advertising and endorsing big time and influential athletes is a major part in their success, making other brands such as Reebok and Adidas almost irrelevant to many. How were these two companies, now worldwide able to rise to the top and continue to dominate their markets? What goes on behind closed doors that will keep these corporations at the top and keep driving many of the individuals who are at the top of the corporate ladder?

Who would have known that a small store that started out in a small town would have grown to be the biggest and most popular retail store there is today. In a documentary, “Wal-Mart, High Cost of Low Prices”, viewers learn the history, culture and the driving force of Wal-Mart. It was definitely a shock for me. Sam Walton started Wal-Mart hoping that if he bought a bulk of goods and sold them at a cheaper price he would be able to make profit; turns out that he was absolutely correct. Today there are more than 8,000 stores worldwide. While many consumers get fascinated about prices on goods and whatnot, what about some of Wal-Mart’s corporate customers who have to sell to Wal-Mart to get their brands on shelves. Wal-Mart buys goods from companies to put goods of the shelves. What I learned was that for the most part Wal-Mart is not big on negotiation which is unfair for a lot of companies. Companies that sell to Wal-Mart count on them to sell their goods for the company’s sake. Knowing that companies want to sell to Wal-Mart, Wal-Mart will negotiate so that they receive goods at the lowest price possible. Other companies really don’t have any choice because in many cases Wal-Mart being as strong as they are; at the end of the day can get whatever they want rather a seller likes it or not. An example of this is the rise and fall of Rubbermaid. In the documentary, it is explained how Wal-Mart played a big role in the rise and fall of Rubbermaid. In the nineties, Rubbermaid was on the rise becoming an admirable company. They had a product that everyone needed and Wal-Mart was there main buyer. Wal-Mart was the main factor in their growth. When Rubbermaid couldn’t come to an agreement with Wal-Mart they started seeing less shelf space in Wal-Mart which started the decline of their company. Wal-Mart is a controlling factor and they get everything they want without taking into consideration the needs of others. I used to see Rubbermaid products and commercials all the time but this has declined as I got older. I didn’t realize this until I was finished watching the documentary. Wal-Mart is able to dominate others by how they buy commodities, combined with the low costs of labor in making consumer products. The products carry a greater value than labor and raw materials. This gives them an incredible amount of profit; in which Wal-Mart is able to do well but workers aren’t and are struggling to take of themselves and their families.

In a very popular documentary “Swoosh, Inside Nike”, viewers get a look inside Nike’s 16 billion dollar empire. Nike has gone from an experiment to the top seller of sports goods. Nike has grown to dominate its competition like Adidas, Reebok, Under-Armour and Puma; and own Converse, Hurley, Bauer, and Umbro. They provide more than 13,000...
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