But when you see just how drastic the differences are between Wal-Mart and their main competitors, the statistics are jaw-dropping.
That's one hundred and one rankings on the Fortune 500 list and $315,432 million dollars of difference between the top two competitors in the market.
How does Wal-Mart do it?
One possible way to increase you profit margin? Make taxpayers foot the bill:
Usually, I try to be unbiased about the way businesses make their money. I, the consumer, appreciate that while they are definitely motivated by their own profits, they're also trying to lower prices for me. However, there seems to be a direct correlation between this company's infringement on various social justice issues and Wal-Mart's überprofits. I know that rational people think at the margin, but some of Wal-Mart's choices seem plain unreasonable.
Walmart is playing the game and succeeding. Until someone calls them out and actually finds a legal fault with what they are doing, Walmart will continue to do what they have to do to gain profits.
ReplyDeleteWalmart, while starting off as a patriotic "Made in America" company changed its platform to delivering low cost good to the consumer. The consumers have chosen this route. Walmart has done nothing but tap into a good business plan, and is really not to blame for the foreclosures of stores. It is simply capitalism. So if people don't want Walmart or other retailers like it, they shouldn't products from there, however as said before, consumers have already chosen.
ReplyDeleteAlthough Walmart is doing what is expected of a business: to earn as much money as possible, it comes at a price to its employees. The way Walmart does business seems ruthless to me. Walmart is so far above its competition that it can afford to focus on satisfying its employees as well as its customers.
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ReplyDeleteIt is to no surprise that Wal-Mart tops the Fortune 500 list. But what is the real story behind Wal-Mart. Their slogan "Save Money, Live Better" is kind of contradictory due to the fact that they exploit cheap labor in under developed countries as well as fail to give employees benefits. While capitalism rules and production of a good may have comparative advantage as well as be the product at which the country specializes in, does it make it fair? Everybody connected to Wal-Mart cannot agree with the last part of their slogan "live better."
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I really dislike Wal-Mart. The way they make their profit (mainly the cheap labor exploitation) and just the whole franchise in general just feels trashy and dirty to me. I'd rather pay a little extra and shop at Target.
ReplyDeleteWal-Mart has a smart strategy by selling cheaper goods to more people, but it's at the cost of exploiting employees. Hopefully it can do something for its workers, although I really doubt about that. Anyway, it is always the customers that make the choice.
ReplyDeleteI am no Walmart fan, but to be fair sears and target are't any better when it comes to products. The only reason Walmart is cheaper is because they treat employees so horribly, not letting them form unions or giving them benefits. And so while its good that people would rather shop at Target where workers are allowed more self-respect, what does that say about us that we'll pay a little more to shop at a store like Target so that we don't feel trashy but the products come from the same sweatshops Walmart buys from? And for the record I'm wearing a sweater from Target so this is not a "holier than thou" message, just an observation. A, E
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