Wal-Mart the Great American Dream: So Why All the Bad Press?
Sam, a graduate of the University of Missouri, started out working in 1940 at a J C Penney retail store located in Des Moines, Iowa. In 1945, he was offered a Ben Franklin franchise in Newport, Arkansas. This lead soon after, to a variety store in Bentonville, Arkansas, he called Walton's Five and Dime. Walton quickly figured out, by selling more volume, he could pass the savings directly on to the customer. In 1962, the first Wal-Mart opened in Rogers, Arkansas, and by 1967, he had already opened 24 stores, all in the state of Arkansas. By 2005, Wal-Mart was producing over 300 billion dollars in annual sales volume with over 6,000 stores worldwide. In the United States alone, there are 3,800 retail stores.
There is now a Wal-Mart location within 25 miles of almost every citizen of this country. Many of them are the newer super Wal-Mart stores. In less than a generation, Wal-Mart has grown from a five and dime store, to a retail giant where a customer can purchase practially everything a household could need. From clothing, electronics to general household goods, to a complete supermarket with all the necessary items to feed an entire family. The Super Wal-Mart locations even offer complete auto repair sevice as well as gasoline at very competitive prices. Even a pharmacy for all your prescription drug needs. Also, customers can get their eyes examined and purchase eyewear and even grab a bite to eat while waiting. They even have a photo center, a travel agency and a financial services center in the larger locations. In the process of building the largest retail empire in the US, Sam has made it possible for millions of Americans to purchase many products and services they otherwise might not be able to afford.
So why, all of a sudden, do we seem to hear nothing but bad news about Wal-Mart? Have they built an empire that has become to big? Or is it because the media is just picking on them due to the sheer level of success they enjoy?
Some of the negative stories have accused Wal-Mart of employee discrimination, causing the downfall of many local businesses, selling products made outside of the United States, forcing their competition to outsource jobs in order to compete, to paying low wages with little or no benefits.
Wal-Mart succeeded because Sam Walton figured out how to sell products at rock bottom prices. He realized, that with an efficient distribution system, coupled with volume sales, the company could pass the savings directly on to the customer resulting in cheaper prices. It turned out to be a brilliant idea. If you look at the history of the most successful corporations in the US, you won't have to look far to find a less than favorable story. It's almost as if, the very nature of our American economic system (capitalism), that on one hand, through competition allows a company to become so big and successful, also creates a scenerio that can jeopardize it all, at the same time. For some companies, staying on top ends up being harder than getting to the top.
No doubt, in the process of becoming a 300 billion dollar company, Wal-Mart surely has broken the back of some small businesses along the way. But whether Wal-Mart deserves the media scrutiny or not, if it wasn't for the competition in the today's business world, we all would certainly being paying a lot more money for products and services than we do today. And besides rock bottom prices in their stores, Wal-Mart does provide hundreds of thousands of jobs for our country.
Whether Wal-Mart deserves the bad press they have been getting or not, the company is a fine example of what our free enterprise system is all about. Like em or hate em, Wal-Mart is the Great American Dream!
Published by David Pearson
I'm a single male living in sunny Florida. I enjoy publishing on-line. My hobbies are music, (I play bass guitar), Ihave a wonderful dog named Rudi, I enjoy watching sports and working on computers. View profile
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13 Comments
Post a CommentThe other issue with Wal-mart is that by making themselves the 'only game in town' in some small towns, they ruined the shoe factories in the United States. They ran all the local shoe stores out of business, and then don't carry the good shoes that were made in America that those stores previously carried. You used to be able to get good Men's shoes that were made in Pennsylvania for about $30.00 in 1989. There hasn't been that much inflation since then. How many shoes now that are priced less than $500.00 are made in the US? The sad thing was that they used to advertise "Buy American."
The problem with Wal-mart is that it forced retailers out of small towns by undercutting prices. I read an interview by a former executive, where he and his fellow Wal-mart employees would go into the towns and predict which retailers would be gone. In addition, they buy all of a supplier's stock until they are their main customer, and then force them to cut their prices until they no longer make any profit. An example is Vlasic pickle company.
oh yeah, cuz its really as simple as that.
If it is so bad and your so qualified then quit and take your experience elsewhere. If it's so bad, I don't understand why you are still working there?
I take it now Wal-Mart has taken to Associated Content, where their blogs aren't working. I never know their attempts at turning around public opinion were getting so desperate ...
No honest, real urbanite would be caught dead in a Wal-Mart, just on price. They're a joke up North but down South where you can't find a Kroger or K-Mart Wal-Mart has reared it's ugly head. They're too caught up in suburbanism they're missing the real point; Wal-Mart is selling you a shell of an item, if you want the real deal go somewhere else. It's sad really, two or three Wal-Mart within miles of each other. They've taken over West Virginia because few other stores want to bear the expense of moving into that area. Now I'd love ot know how they got through the backdoor politics and private deals there, what were they offering, Wal-Mart knows the deal. I'm shocked they took over Chicago the way they did.
It's warranted. And Wal-Mart is a joke; yeah there are stores every 25 miles that's because they're the only store open 24 hours a day. So when everyone else closes you can still go into Wal-Mart and buy clothes or groceries, or a filter for your central air heating system in the middle of the morning. That used to be K-Mart that did that. Wal-Mart's pay sucks, their products suck, and the only reason I go in there is because the other 3 fancy grocery stores I go to refuse to carry some of the items I really want. But they will compete on Wal-Mart on price, just on their terms and not often enough to sink to Wal-Mart's bottom line level. They have sales every other week, actually there is something on sale all the time but that is another issue.
LMFAO!!! WalMart has provided Thousands of Jobs??? Are you insane?
Yes yes, plenty of 7 dollar an hour, 39 hour a week jobs.FYI: Don't get sick ;-)
I flunked the assessment test, and trust me I answered them all on ethical basis aimed for the customer, evidentally the customer isn't great in their eyes. I went to Wal Mart as they ran K-Mart out of business in my hometown! When they first opened their doors when Sam was alive, there was a customer service rep in each department wanting to help. Now you have to track down someone to get some fish or paint! I searched one day for a full hour for a Wal-Mart associate to get me some paint mixed. I was told they would be right with me in five minutes, I left after teh full hour wait. I was told that the majority of the customer service reps went to a meeting! When this question was presented to me in the assessment test I put down I asked my supervisor to be a few minutes late.. wrong answer!
Many discounters have equally priced goods and services K. Kemper
The only reason they discount their prices is because of companies like Wal-Mart, without the competition their prices would be higher. Without competition in America, we would all pay more for goods and services!