Free «Wal-Mart Analysis» Essay Sample

The anticipated expansion of Wal-Mart chain stores into small southern markets in the United States has elicited mixed reaction from both the native business enterprises and the community at large. The paper seeks to explore the divergent opinions of both the small business owners and the community.

Most studies conducted by reputable institutions have confirmed repeatedly that such an expansion would cause most small businesses to be closed. The closure of such small enterprises would inflict myriad problems to the community. The closure of small businesses could be a result of reduced job opportunities, poverty, and loss of funds. In fact, People for a Better Athens, believe that the expansion of Wal-Mart would pose a threat far beyond the closure of downtown businesses (Spotts, 2005).

Most small business owners consider such an expansion as bad news. It is obvious that the local supply chain would not yield the competitive advantage posed by the giant chain store. Most small business owners argue that such an expansion would force them out of the market. Usually, the lives of most members of the community rely on the small enterprises. The expansion of Wal-Mart would result to a high level of unemployment. In addition, Wal-Mart would exploit the members of the community. Wal-Mart’s employee structure is on a part-time basis. Then again, most employees are paid low wages. In the end, the expansion is observed to enhance poverty. No wonder, the National Black Church Initiative has constantly protested against Wal-Mart’s unjust labor practices. In addition, Wal-Mart would provide low-priced commodities thus forcing the local businesses out of the market (Spotts, 2005). In as much way, the local manufactures would be forced out of work since Wal-Mart relies on Chinese manufacturers. However, the primary obstacle posed to local business owners is Wal-Mart’s unparalleled purchasing power and its global procurement strategy. In many ways, the establishment of such a store would ruin the healthy competitive business environment.

Despite the wrath inflicted on the local business owners, the community stands to face hordes of problems because of such expansion. To begin with, the Wal-Mart store would occupy almost the entire community size. The proposed plan for expansion identifies a vast store with a tri-level packing deck. In addition, the community would have to accommodate thousands of cars in a single day. Such traffic might discourage visitors from treading downtown. The establishment of such a vast chain store is bound to cause social strain within the community (Bianco, 2007). Most communities have since complained of racial discrimination, sexism and other unjust labor practices associated with Wal-Mart.

In conclusion, it would be imperative to note that the expansion of Wal-Mart to various communities within the United States of America has become a common occurrence. In fact, it is speculated that Wal-Mart establishes new chain stores within the southern communities after every two days. Due to this news, the corporation’s unpopular margin swells each day. It is worth mentioning, that most communities oppose the expansion of such stores in their territories. As a contradiction, Wal-Mart has incessantly carried its expansion strategy undeterred. No doubt, a representative of the corporation would serve to maintain an outstanding reputation of the world’s largest company and corporation (Soderquist, 2005). Most likely, the representative would identify low-priced commodities they offer to the market. The argument would be, such low prices would help the members of the community to save their money. Then again, such low prices allow the buyers to purchase basic commodities in sufficient quantities. Secondly, Wal-Mart stores are convenient, since they offer a diverse choice of commodities. The community would find everything they needed within the store. Then lastly, the representative would argue that the services provided by Wal-Mart are the best. For instance, buyers can return commodities they have already bought. Therefore, buyers are able to return commodities that are not convenient to them. And what is also of great importance that , Wal-Mart has adequate parking space for its customers.


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