Walmart Research Paper

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Ranila Rodil

Professor Varbel

English 1-A

November 17,2011

Are saving a few dollars worth it?

America shops at Walmart to save dollars in their pockets. Paying lower prices at first seems like a good idea but there is always a back side that most consumers fail to understand. Walmart has many pro’s and con’s. For every con there can be a contradicting pro. Overall the Walmart company donates to many charities, employs disabled workers, lowers medications and so on. All these are great acts of philantrophy but I believe that in the long run Walmart is bad for America right now during this economy crisis.

According to the article “The Walmart You Don’t Know” by Charles Fishman, Walmart is using it’s muscle from being the world’s largest company and retailer to bully it’s suppliers. Yes, Walmart buys from American companies but at the price they choose. Walmart is dedicated to providing customer with the lowest prices possible. The company is so large, and such a valuable client to their suppliers, that when Walmart dictates what prices they need a supplier is forced to comply. Walmart is notorious for penalizaing their suppliers when demands are not met. Often times the low prices will make the suppliers lose money, or devalue their once prestigious brand.

Many American companies are forced to sell their products at the Walmarts low prices, and in doing so many of theses companies are forced to shut down their American factories. Overseas labor is much cheaper than the US, and in many ways they just can’t compete. Walmart will offer two brands of the same item, a cheaply priced Chinese brand (for example), next to the more expensive US brand. A typical cutomer who goes to Walmart is obviously more interested in cost savings, so will probably choose the less expensive item. This in turn forces the US company to be cost competitive. The only way to do that quickly, would be to outsource labor. US factories have...
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