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Sam Walton believed that impressive profits in any business do not source from charging high prices on goods and services, but from making high sales volume. Samuel Walton believed that he could only make smart profits if he did a lot of sales of his merchandise. For this reason, Samuel Walton resolved to reduce the prices of his merchandise below the market margin, which eventually played the most critical role in attracting many customers. With many customers, the rate of stock turn over in the Wal-Mart stores increased thereby resulting to high profit margins. The success of Wal-Mart stores should act as reflective mirror to any investor in the chain store industry. Wal-Mart’s success lines up with various economic and social benefits as well as negative implications in the line of economy, social and environmental arenas.
Wal-Mart stores have worked towards eliminating monopolistic complacency in the American market by inducing high level of competition. Wal-Mart is known for its tendency to reduce handlers of its products to the shelves, a strategy achieved through the identification of viable vendors who inspect the stocks in the stores and in the shelves and organize for supply when necessary. The strategy has helped Wal-Mart stores in cutting costs, transferring the advantages transfers to the customers who eventually end up buying goods at low prices (Bargdahl 14). The reduction of prices charged on the final products by Wal-Mart has attracted many consumers to the Wal-Mart stores, an event that has seen decline in performance of the other competitors. Owing to the high competition from Wal-Mart, other market operators have been forced to lower their prices thus the benefit to the consumers.
According to Bergdahl, Wal-Mart stores adopted advanced technology of loading and offloading, which applies the use of conveyor belts (41). Wal-Mart has therefore employed thousands of people who operate the
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The researcher of this paper discusses the topic of what makes Wal-Mart the world’s largest retailer today and its operations so unique is that it drives costs out of the supply chain which as a result helps the end user to constantly save money and spend less without compromising on the established living standards.
The author states that Wal-Mart uses a perpetual inventory system wherein a good deal of technology is required. In this system, inventory quantities are updated continuously and subsidiary ledgers are updated after each transaction. Perpetual inventory provides a high degree of control, aids the management inventory levels.
The aim of the paper is to show the Wal-Mart company in the world's market. The company operates abundant large discount department stores and warehouse stores. Wal-Mart employs the service of 2,100,000 workers so as to meet the interests of its customers across the globe. It was the world’s largest retail industry and now it ranks at the third position.
The case was initiated by lead plaintiff Dukes who represented some 1.5 million employees and was filed against the company Wal-Mart for injunctive relief, punitive damages, and back pay on behalf of themselves because of Wal-Marts alleged discrimination against women in violation of Title VII of the Civil Rights Act of 1964 (Wal-Mart 1).
This has been the foundation of the retail company and the growth propeller. Wal-Mart stores are the dominant retail stores in the United Sates, with an estimated 84% of shoppers visiting the stores in the past year (Lecavalier). Currently, the company is growing further to Europe through the acquisition of Asda Stores.
Today, Wal-Mart is probably second only to Microsoft in terms of negative publicity; it is seen as devil by small business owners who have been put out of business and even those consumers who benefit from its vaunted low prices are beginning to rebel in light of complaints over customer service.
Investors consider Wal-Mart’s common shares a blue chip stock. Blue chips stocks are defined as stocks issued by a well-know company with an established record for making money and paying dividends (Teweles & Bradley & Teweles).
It started out with advertising just like the other members of the industry who were using the newspapers but later changed when the results were dismal (Soderquist, 2005). It abandoned the strategy of advertising in the newspapers because
The use of this strategy by a well-known megastore, Wal-Mart, is explored in this paper. The efforts of Wal-Mart to establish a store in a small town need to be reviewed as they can be related to a series of advantages and
When large firms such as Wal-Mart enter communities, they have economies of scale and scope that allow them to affect the prices of goods, wages, and demand for different products in these communities. In BusinessWeek, Bianco et al. studied the pros and cons of Wal-Mart in local and national economic levels.
9 Pages(2250 words)Research Paper
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