log 5 - Although it is efficient and easy for Wal-Mart to...

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Michelle Abbott 810803787 BCOR-1010-113 Starting in 1970, Wal-Mart entered the market with a combination of extremely low prices and relentless expansion. They soon began to influence Americans to demand for ever-low prices. With the new business beginning to emerge, they helped boost America’s overall productivity, lowered the inflation rate, and strengthened the buying power for millions of people. With all of this occurring, it began to drive countless small shops out of business. When rival retailers started to realize the impact that Wal-Mart’s low prices were having on their own shops, they began to try new things in order to compete with Wal-Mart since their low prices could not. They lured Americans away from the low price promise by offering greater convenience to local residents, more selection, higher quality, and better service. Since these were all things that the Wal-Mart lacked, small shops knew that they had to capitalize on this opportunity to keep their shops in business.
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Unformatted text preview: Although it is efficient and easy for Wal-Mart to give customers low prices, the benefit to their company of making a large profit is not necessarily best for society. Without taking externalities into consideration, the total cost is much greater than just the private costs of the company, and their conduct is not having a positive impact on society. Wal-Mart is acting with remarkable conduct in a negative way by only doing what is best for them in order to create a small monopoly. Without thinking about the effect they are having on the surrounding smaller businesses, they are slowly starting to lose profits because of the retaliation of their customers and small competitors. Without the personal service and convenience that other small business can offer, it will take a lot more than Wal-Marts low prices to bring the majority of their customers back. McWilliams, Gary. (2007, October 3). Wal-Mart Era Wanes Amid Big Shifts in Retail. Wall Street Journal. pp. A1, A17...
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This note was uploaded on 03/15/2008 for the course BCOR 1010 taught by Professor Latier,jef during the Fall '07 term at Colorado.

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log 5 - Although it is efficient and easy for Wal-Mart to...

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