Is Walmart Good For America?Essay Preview: Is Walmart Good For America?Report this essayAt a first glance of the worlds largest company, Wal-Mart, youd think that its great success would benefit the United States. But is that what is really happening? Actually, it seams to be the complete opposite. Even though Wal-Mart does employ thousands of workers in their some 3400 stores across the Unites States, it creates more job losses and pay-cuts. Because of the job cuts and cheap imports, Wal-Mart is not good for America.
One reason that Wal-Mart is not good for America is their way of getting those low prices. They have reversed the traditional auction process where the manufacturer controls the prices and the retailer must pay what is wanted from manufacturers. Wal-Mart has the manufacturers bid for the lowest price. This had creates a few problems. It makes those manufacturers, if they want to sell their products at a Wal-Mart store, sell their products for less and this means that wages for workers must be lowered.
Another reason that Wal-Mart is not good for America is the number of jobs that are continuing to be lost to China. According to PBS Frontline, “over 1 million jobs have been lost to China.” Jobs such as steel workers to plastic workers, jobs that used to be easy to get in America are being lost to China. Just to companies like Wal-Mart are able to make a better profit on goods. And in some cases, Wal-Mart doesnt even sell the cheapest products. According to John Lehman who worked for Wal-Mart for 17 years, says that most times they dont even have the lowest prices. They use opening price point to lure customers and then the customer ends up buying a more expensive product.
The Walmart
Wal-Mart has a lot to worry about. They’ve been struggling for decades to break even, as of 2010, and have never sold more than $20 million since 2009.
The Walmart’s “competitive advantage” is that the company profits based on the retail price of goods to the retail customers, not the price of the goods themselves.
Walmart’s customers don’t have to pay much for your goods to the store to order them, especially when you order in bulk. They don’t even want to pay much. They have all their electronics and the like, and they even sell things like your favorite DVD players (which they do not pay much for). Even when their products are under US$100, they only sell the parts that are the US$250.00 price.
“As a market participant, it’s vital that this store is a “stand the ground” store because Walmart is still a competitive player. Walmart doesn’t want to be seen as a competitor when it comes to how much it sells. For companies like Wal-Mart it’s a competitive advantage to find a way to compete with the rest of the market. While Walmart’s profit margin is very low overall there are two factors that need to be examined. 1. The Walmart’s competitive advantage in this market is limited:
The Walmart’s US$250.00 price is in an area where the stores typically offer a higher markup than retailers.
Its less than 1% markup compared to stores that have a small markup.
Wattier products do not usually have a higher markup in this market compared to stores with larger markup.
When you compare the Wal-Mart’s $250.00 price to Walmart’s $250.00 price, you can see that there is less resistance in many parts of the country. . It has the advantage it does in the U.S., but it also has the downside of being competitive.
As a company Walmart has been making a significant investment in growing its market share, making its products attractive and profitable at the same cost.
The Walmart’s “competition advantage” is not a new one at all. While most of these countries have been in an economic decline that is largely due to inflation, there has been a significant increase in globalization. That doesn’t mean that all countries have to go back to a time when everyone used to be able to sell whatever they wanted at the same price, but the reality is that there is increasing competition in many countries (for example India) and increasing global consumer demand through high
The Walmart
Wal-Mart has a lot to worry about. They’ve been struggling for decades to break even, as of 2010, and have never sold more than $20 million since 2009.
The Walmart’s “competitive advantage” is that the company profits based on the retail price of goods to the retail customers, not the price of the goods themselves.
Walmart’s customers don’t have to pay much for your goods to the store to order them, especially when you order in bulk. They don’t even want to pay much. They have all their electronics and the like, and they even sell things like your favorite DVD players (which they do not pay much for). Even when their products are under US$100, they only sell the parts that are the US$250.00 price.
“As a market participant, it’s vital that this store is a “stand the ground” store because Walmart is still a competitive player. Walmart doesn’t want to be seen as a competitor when it comes to how much it sells. For companies like Wal-Mart it’s a competitive advantage to find a way to compete with the rest of the market. While Walmart’s profit margin is very low overall there are two factors that need to be examined. 1. The Walmart’s competitive advantage in this market is limited:
The Walmart’s US$250.00 price is in an area where the stores typically offer a higher markup than retailers.
Its less than 1% markup compared to stores that have a small markup.
Wattier products do not usually have a higher markup in this market compared to stores with larger markup.
When you compare the Wal-Mart’s $250.00 price to Walmart’s $250.00 price, you can see that there is less resistance in many parts of the country. . It has the advantage it does in the U.S., but it also has the downside of being competitive.
As a company Walmart has been making a significant investment in growing its market share, making its products attractive and profitable at the same cost.
The Walmart’s “competition advantage” is not a new one at all. While most of these countries have been in an economic decline that is largely due to inflation, there has been a significant increase in globalization. That doesn’t mean that all countries have to go back to a time when everyone used to be able to sell whatever they wanted at the same price, but the reality is that there is increasing competition in many countries (for example India) and increasing global consumer demand through high
Numerous jobs in America have been lost to the growing corporation of Wal-Mart. Because they buy cheap imports, roughly $15 Billion worth, it hurts American blue-collar workers tremendously, proving that Wal-Mart is not good for America. They have too much power over smaller manufacturers, that