Preview

Is Walmart good for America?

Good Essays
Open Document
Open Document
689 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Is Walmart good for America?
Is Walmart good for America?

As the largest retailer in history, it’s no surprise that Walmart is the target of both vicious attacks and effusive praise. According to its own website, Wal-Mart Stores, Inc. operates more than 8,000 stores, employs more than 2.1 million people, and sells more than $400 billion worth of goods in every year. Though this bulk intimidates those who fear for the viability of “mom and pop” retailers, Walmart’s great strength is that it devotes its considerable power to American consumers. Its size enables it to provide services that other retailers cannot, and it has deservedly become an integral part of the modern American economy.

Criticisms of Walmart’s effect on small retailers fall flat because of Americans’ role in that effect. Consumption is the only democratic component of the corporate world: small retailers fail because Americans choose Walmart. Walmart provides cheaper, better, more accessible services than its competition. While competing stores’ closings produce touching hard-luck stories, the shift to Walmart is beneficial for society, because Walmart is much more efficient at every stage of its business. The benefits of this efficiency are less personal and more broadly spread than the costs to smaller competitors, but such dissemination of value demonstrates one of the best qualities of Walmart – its egalitarianism. Walmart provides a good that is accessible to virtually all Americans. The 2006 book The Walmart Effect estimates that 97% of Americans live within twenty-five miles of a Walmart, and Walmart’s low prices assure that the store is also economically accessible. As long as consumers continue to choose Walmart (for understandable reasons), the onus is on small retailers to find better ways to compete.

The second main argument against Walmart deals with its impact on suppliers. Because Walmart has such immense buying power, it carries great

You May Also Find These Documents Helpful

  • Good Essays

    Wal-Mart is able to deliver the lowest possible price to their customers in a friendly environment focused on serving the customer’s every need. They effectively snuck into the retail shopping industry by opening stores in small towns where the population could buy everything they wanted at one place. Becoming the worldwide leader in sales for all companies does not happen without strong competitive advantages. Once Wal-Mart establishes itself in these small towns, they have taken over the demographic. All potential customers’ needs are fulfilled and competition is shut out. With the massive size of supply chain demanded to service thousands of stores,…

    • 762 Words
    • 4 Pages
    Good Essays
  • Good Essays

    It is true that when Wal-Mart moves into community businesses shut down. There have been many documentaries showing the empty buildings and the many closed shops downtown. What they haven’t shown are the businesses that fill those empty shops eventually. In their publication Sobel and Dean point out that it is a…

    • 528 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Wal-Mart’s cost efficiencies allow them to put downward pressure on both prices of goods on the market and prices offered by sellers. This contradicts Smith’s theory that the only regulator of market prices should be the self correcting forces of supply and demand. Small scale retailers cannot cope on the massive cost efficient level of the bulk buyers Wal-Mart and no longer have free access to equal resources due to Wal-Mart’s influence on supplier prices. Small and medium retailers are vital to economic development as they promote entrepreneurship, innovation and investment in American markets, provide employment (especially youth employment) and lead to the development of bigger companies and industries. The growth of the nation is stunted by Wal-Mart’s squandering of its competitors and by driving of factories out of America, which can lead to the destabilising of the economy, a reduction in money generated in the country and even to the collapse of various…

    • 781 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Pros And Cons Of Walmart

    • 360 Words
    • 2 Pages

    Wal-Mart is a company that is well known for destroying small towns and small businesses. There are some skeptics that would say that they provide jobs for the area, but they really do not look at the picture as to how many jobs they take away. Bringing in minimum wage jobs and taking out businesses that have been around for decades is a big downer, especially for someone like me that supports small business owners to the fullest. Wal-Mart has to be one of the worst places to work for and they are most certainly one of the worst places to shop at.…

    • 360 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Consumers are all attracted to Wal-Mart because they are now capable of shopping for all their needs in one place rather then having to go to several different locations. They will spend the extra time driving to its locations in thought that in the end they will be saving much more money. So the question arises why be against such a store when the people of America are getting their time and moneys worth? All the Wal-Mart stores are strategically placed into little towns where everybody else was ignoring them. Turns out that these small towns acquire more business then anyone could think of. This forces all the small family businesses to either lower their prices to points where no profit will be made or to just simply go out of business. Certain stores will have their strong and loyal customers and won't see any of these side affects, however for the most part they find no reason to compete with such a large competitor. Many towns and small communities become very…

    • 644 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Wal-Mart Strategic Analysis

    • 2316 Words
    • 10 Pages

    Wal-Mart is also far and away the biggest customer of virtually all of its suppliers. It 's scale of operation allowed it to…

    • 2316 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Assignment About Wal-Mart

    • 808 Words
    • 4 Pages

    Nowadays, Wal-Mart is quite common in our daily life and it also impacts us unconsciously, such as the shopping habits. Although this global chain supermarket asserts that they bring positive effect on the area where they located in and commissioned the consulting firm Global Insight to write a report in order to prove their point, some people still distrust it. For example, Jared Bernstein and L. Josh Bivens had composed a brief named “The Wal-Mart debate a false choice between prices and wages” in 2006 to doubt the Wal-Mart’s claim. Moreover, Irwin, E.G., and Clark, J’s research about the local costs and benefits of Wal-Mart is also supply some evidence.…

    • 808 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Consumerism: Good or Bad?

    • 1921 Words
    • 8 Pages

    lives and purchasing behaviors which inevitably leads to materialism. Many of these viewpoints can be analyzed as being subjective in that they focus primarily on "frivolous" products and "debts" created, but yet fail to acknowledge the processes of the concept of Consumerism. Consumerism is defined as, "The movement seeking to protect and inform consumers by requiring such practices as honest packaging and marketing, product guarantees, and improved safety standards; and the theory that a progressively greater consumption of goods is economically beneficial." (dictionary.com). The definition of consumerism and the image depicted by a large majority of today's society contradict one another to a great degree. Consumerism is a part of a perpetual monetary cycle that fuels today's socio/ecological marketplace.…

    • 1921 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Wal-Mart has a great deal of strengths which is apparent due to their incredible success throughout the years. Wal-Mart has mastered the process of production, movement of goods, warehousing of goods, ensuring goods arrives on time at the right place, and for a cheap price. Wal-Mart’s foundation was built upon understanding, identifying, and knowing exactly what customers want from their retailer and having this information has contributed to their tremendous success. Wal-Mart is a powerful retail brand which has the reputation for providing a wide range of products all in one store, value for money, and convenience.…

    • 1498 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Problems Faced by Walmart

    • 661 Words
    • 3 Pages

    Another accusation against Walmart is that it put pressure and cost burden on suppliers to achieve its lofty goals regarding low price (Bianco & Zellner, 2003). It forces the suppliers to improve efficiency and if they fail Walmart cease to do take the products from those suppliers as it easily find some other suppliers (Lohr, 2003). Walmart is also criticized for providing low wages and benefits to the employees. It was often accused for being production organization instead of being employee oriented organization. Moreover, it discourses labor unions. Walmart was also accused for discrimination in workplace and even it had to face class action law suits for such…

    • 661 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Wal-Mart is more than just another large company, in 2011 their total revenues was $419 billion and they employed over 2.2 million workers in the United States at about 3,600 stores and more than 550 employees at Sam’s Club (Neumark et al, 2005). Wal-Mart’s success has drawn both imitators and critics. Wal-Mart has been accused of putting thousands of local stores out of business, driving down wages and forcing its workers…

    • 2556 Words
    • 11 Pages
    Powerful Essays
  • Better Essays

    Wal-Mart is one of the largest chains, which operates in three large segments: The Walmart U.S., the Walmart International, and the Sam’s Club. In this report we are focusing mainly on Walmart US. This latter is has a momentous presence in the retail industry, operating throughout the united states. “ The Walmart U.S segment includes the Company’s mass merchant concept under the Walmart or Wal-Mart brand, as well as walmart.com.” (Reuters, n.d)…

    • 2621 Words
    • 55 Pages
    Better Essays
  • Good Essays

    Wal-Mart. The super store of America serves over 100,000,000 customers per week, employs over 2,000,000 people, makes $36,000,000 every hour, and earns $405 billion annually (Wal-Mart Company Statistics). The convenience that Wal-Mart provides Americans is undeniable; with its always-low prices, over 4,000 stores, and twenty-seven Wal-Mart brands, this family friendly store has become a phenomenon in the last decade. Yet consumers don’t see all the blood, sweat, and human cost it takes to be the number one retailer in the nation. While Wal-Mart claims to be an asset to society, there is a dark side to the super store. With its unlivable wages, history of instilling fear in workers, child labor, and disregard for working conditions, Wal-Mart is the perfect example of a company that is blind to human rights.…

    • 893 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Wal-Mart is good for America because of where our economy is at and the fact that we are in a recession. Wal-Mart is the biggest retailer in the world and it lures customers there way. They have hundreds of stores all over the world including China, where most of there products are made. It is also known that Wal-Mart is a one stop shopping center which means that you could buy anything all under one roof. China is new economics frontier. In China, most of the workers average twenty five cents an hour with just one break a day. In order for this retailer to be so successful, they usually export out cotton for China in return for clothing. America has cheap materials that they need to make the products that the retailer wants. The founder of Wal-Mart which was Sam Walton died in 1992. Most of Wal-Mart products are foreign. They tend to destroy competitors and it puts there competitors in the dust and they can’t keep up with them. To some people, they think that Wal-Mart shouldn’t be able to get products in like this but in reality, this is legal and Wal-Mart had made a plan and it has been successful for years. Wal-Mart products are always on high demand so the makers in China are always employed and busy despite what they are making. The quality of what China makes is not always on the high end side, but at least is passes the worlds standards. From my perspective, China gives our economy a boost and it is helping out many Americans live there every day life. Since Wal-Mart has partnership with China, it gives China as a country more jobs so they have less unemployment there. With Wal-Mart ahead of most retailers, it gives a chance for target and such stores to find new opportunities to make there business grow. They have made trillions of dollars. In most cases, Wal-Mart was the most admired retail store in the world because of what products they offer and they stand behind there low prices and its a convient store for…

    • 429 Words
    • 2 Pages
    Good Essays
  • Good Essays

    When the economy took a turn for the worst, everyone was looking for the best deals! One could not waste a single penny earned on just anything! Everything and anything counted! So what supermarket did everyone rely on to save money? Walmart! Walmart is the world’s largest retailer and corporation employing 2.1 million people and approximately 1 percent of the United States (Smart Planet), and usually is the place one would go to get the best deals, but is it really good for one’s local economy? There has been much controversy over the how Walmart affects not just the global economy but the local economy. One might believe that it’s good for their economy because it has the best prices for their products, and it saves people money, but this…

    • 1109 Words
    • 5 Pages
    Good Essays