Wal-Mart_essay

Wal-Mart_essay - 1 Muhammad Ali Arshad Wal-Mart: The Good,...

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1 Muhammad Ali Arshad Wal-Mart: The Good, the Bad, the Ugly The world's largest retailer, Wal-Mart, employs about 1.9 million people in nearly 5,000 stores in 15 countries. It was established in 1969 by Sam Walton at Bentonville, Arkansas as a small “mom & pop” store. Being the largest retailer is not the only achievement Wal-Mart is applauded for, its biggest contribution is the way it changed the traditional image of the retail store and the relation between a retail store, economy and society. During the early years of its establishment Wal-Mart was gaining success everywhere because of its low prices, flexible timings and variety of items but all of it started being criticized when the corporation became large enough to be just called a “retailer”. Its growing employment and earnings started directly affecting people and economy of the country. As the Wal-Mart is expanding its controversial image is expanding even more. Wal-Mart has two sides of its image, on bright side it benefits people, its consumers, and on the dark side it harms people, usually business competitors and industrial labor. “Low price, Always” advertising slogan used by Wal-Mart, is one of the major reasons behind the success of Wal-Mart. Wal-Mart has always offered low prices to its consumer. That is why people prefer it over other retailers. In 1993, the Arkansas Supreme Court sided with Wal-Mart against several Arkansas pharmacies Wal-Mart was accused of offering low drug price, even lower than its cost. It is true that Wal-Mart offer low prices but the actual reason behind these low prices is increasing consumer. With the increasing number of consumers and retail competition, Wal-Mart is bound to offer low price. That is why Wal-Mart is so tough to negotiate with, and so relentless in its quest for lower prices and lower costs. American consumers now consider it as their due to have access to a wide variety of cheap, reliable goods. They prefer low prices over brand loyalty. Wal-Mart is often spoken of as the most powerful company in the world, but it earns less than four cents on every dollar of sales, and its profit margins have stayed roughly the same year after year, which means that when it cuts costs with suppliers it passes along those savings to the customers, instead of padding its own bottom line. Wal-Mart cannot charge more; if
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2 Muhammad Ali Arshad it does, its customers will go elsewhere. The same is true of Target and Costco. In a sense, Wal-Mart is
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Wal-Mart_essay - 1 Muhammad Ali Arshad Wal-Mart: The Good,...

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