But consumers aren't helping their fellow countryman earn his own living by buying these imported items. Consumers are giving their hard-earned money to Walmart to go back to China to buy more items. (Smith & Young, 2004). Walmart has created new jobs for people when they open new stores, but they are underpaid jobs. Many of the positions are part-time, therefore, they are positions without benefits.
Chrstopherson, (2007) proclaims the company failed at its attempt to place stores in Germany because Wal-Mart failed to adapt to the strategies and regulations of the German government. The United States business plan the company was using in other locations was not congruent with the laws, regulations, and society of Germany (Christopherson, 2007). Organizations such as Wal-Mart have to be mindful of the many hardships imposed by the political and legal systems of government in countries abroad suggest Daniels, Radenbaugh, & Sullivan, (2011). It is believed that most overseas countries do not ascertain the same political, economic, and cultural beliefs as Americans (Daniels, Radenbaugh, & Sullivan, 2011) and for this Wal-Mart would face similar problems when trying to start markets in both China and South Korea. While diversity is built in the Wal-Mart culture of business the locals of South Korea did not agree with the taste or style of western merchandise proclaims David Schwartz, Chief Executive Officer of Productive Environment Inc., (2004).
Such as the violations of labor laws and gender discrimination, and taking out smaller businesses wherever they set up. One of the negative reasons to Wal-Mart would be its violation of the federal Robinson-Patman Act and any similar state law which is a law that prohibits price discrimination, as to most of its purchases of inventory, which drives many lawful and law-abiding local businesses out of business, which enables Wal-mart to lower its costs and sell at lower prices, all at the expense of its local competitors and the people who Wal-mart make their purchases from. Another reason that adds to the negatives of Wal-mart is that it's in violation of the federal and state wage and labor laws requiring Wal-Mart to pay overtime to its employees called "Associates" by Wal-Mart which enables Wal-Mart to lower its costs and sell at lower prices all at the expense of its local employees and their families. Wal-mart also allegedly uses unlawful tactics to prevent its employees from forming unions in violation of the federal Taft-Hartley Labor Relations Act and various state statutes.
As globalization continues to increase, the fortunes and misfortunes of some businesses continue as well. Wal-Mart is a prime example of globalization, and of a company that is thriving because of it. Wal-Mart makes it goods and services available all around the world, covering twenty-eight different countries and employing over two million people, a prime example of cultural integration (walmart.com). It doesn’t matter where you go or what you do, you always see a Wal-Mart. That is what is called the “Wal-Mart effect”; they have made themselves available to everyone everywhere.
The first time I purchased groceries and household items from my own wallet, I learned that I needed to find a more economical store that could offer me “more bang for my buck”. So basically, this is when I said, “Good Bye Publix,” and, “Hello Walmart”. It was undeniable to me on my very first trip to Walmart that the choices, value, and convenience that Walmart offers is far superior to that of Publix. First of all, Walmart has more product options to choose from than Publix. Walmart usually has a minimum of four to five options to choose from per grocery item.
Assignment 1 – Competitive Analysis of the Grocery Industry Rebecca Lenz Alice Richmond BUS 490 – Business Policy October 27, 2011 Competitive Analysis of the Grocery Industry Porters Five-Forces Model of competitive analysis is a widely used approach for developing strategies in many industries (David, 2009). Everyday millions of Americans and citizens of other countries nourish their bodies with food that is purchased at one store or another. By using Porters Five-Forces Model, a clear and concise competitive analysis can be done for an industry that is sure to be around forever. The grocery industry consists of many different competitors like Publix, Winn Dixie, Wal-Mart, Costco, and BJ’s just to name a few. When a consumer sets out to fill their cabinets with their everyday necessities the owner and operator of these grocery stores needs to take into consideration the wants, needs and desires of their shoppers, how to pull them in and how to keep them.
Oppositions divided into two groups, financial driven and social/ environment driven. Walmart’s rapid growth affected local merchants and stores (who previously sells expensively through monopoly and price-fixing). These stores and retail chains were forced out from business. In return, they tried to stop Walmart’s invasion through excuses like low-cost reputation does not fits high society images and they are killing other stores by selling cheap. For social activist, their fights against Walmart have no financial stakes.
Overall Wall-Mart is still expanding outside the United States, Particularly in market where it entered by acquiring a strong retailer. Still given Wal-Mart formidable record at home, the company’s recent setbacks have exposed a rare vulnerability oversea. Wal-Mart's ability to replenish their shelves four times faster than its competition is just another advantage they have over competition. Wal-Mart leverages its buying power through purchasing in bulks and distributing the goods on it' own. Wal-Mart guarantees everyday low prices and
Case Analysis- Wal-Mart Introduction The implementation of Wal-Mart’s strategy in China has failed to achieve the desired sales results. Despite being the leading retailer in the world, Wal-Mart’s model of success that provides a key competitive advantage in the U.S. does not equally translate to diverse international communities. Likewise, Wal-Mart struggled in Germany and eventually withdrew by selling its stores to rival Metro. Despite the challenges currently being faced in China, Wal-Mart has experienced international success in Mexico, Canada and Britain. What long-term strategy should Wal-Mart adopt in China?
The results are detailed and relevant financial and operational descriptions of the two retail competitors. Introduction Both Wal-Mart Stores, Incorporated (Walmart) and Target Corporation (Target) compete in a worldwide market, although Target clearly has smaller stores and a different selection, both companies are retailers of general variety consumer goods. Walmart and Target both have stores in every major city in the United States (Target Official Website, 2008; Walmart Official Website, 2008). One is surely the microcosm of the other, yet they are competitors. The following analyses will look at 10 fiscal years of company operations.