Wal-Mart Good for America
Wal-Mart is good for America. It gives customers quality products for a good value and price. It gives manufactures’’ an almost guaranteed sale and the whole computer system is high tech and efficient which makes the production and delivery run smoothly. Wal-Mart is world known for their every day low prices. Even though it does mean unemployment for the manufactures, the stores over the country give people a place to work which doesn’t pay much but its better than no income at all. The low prices make every thing cheaper so you don’t need a lot of money to shop at this store. By building factories in foreign countries, using low paid workers and buying cheap foreign material we are able to produce at a lower cost. We have a comparative advantage; Wal-Mart produces products in foreign countries at a lower opportunity cost and gave up less to get more. We didn’t give up our own resources and labor and in return got cheaper, great selling products and happier customers. Now the customers can save and use money to buy more things at a variety of places. Because Wal-Mart is so popular and cheap manufactures want to sell their products to Wal-Mart. In Bentonville negotiating takes place between the manufactures and the Wal-Mart representatives. Prices and supply is talked about until eventually everyone agrees and a deal is made. Wal-Mart usually gets the margin they want because the manufactures know that the product will be more popular at this store than another and if Wal-Mart doesn’t like the deal they just wont buy the product. This makes for a good sale for everyone, one side more so than the other but still beneficial. The expanding technology at Wal-Mart makes for easier and more efficient means of production, delivery, for less mistakes and growing sales. The high technology beats Wal-Marts competitors there for making them an even better store in that sense. The bar code reading on all their products lets the managers...
Please join StudyMode to read the full document