Wal-Mart’s Success in the Global Economy

Wal-Mart’s Success in the Global Economy

Wal-Mart has become one of the most well-known and loved brands in the world. Wal-Mart Corporation is considered to be the biggest in the world, having multiple subsidiaries worldwide. Possessing millions of loyal customers Wal-Mart continues to expand not only the net of its stores, but also spheres of its activity. Besides selling goods at lower prices than its competitors, Wal-Mart is planning to enter new spheres of economy, such as manufacturing and banking. Various studies have shown that Wal-Mart has become even more successful when the process of globalization started.
The main purpose of the current essay is to speak about Wal-Mart’s success and the reasons that caused further success of Wal-Mart in the Global Economy.
Being organized in 1962 by Sam Walton, Wal-Mart remained the largest corporation in the world until now. Nowadays, Wal-Mart is objectively the biggest retailer not only in the United States, but also in the world. Wal-Mart is responsible for implementing successful pricing innovations, which is one of the main reasons of its success. Operating for so long in the American and world market, Wal-Mart is still the largest private employer, largest grocery store and one of the largest pharmacies in the USA. “A range of studies have found that prices at Wal-Mart are anywhere from 8 to 39 percent” [1]. Wal-Mart was able to gain a reputation of people’s company, that’s why a lot of people would rather work at Wal-Mart than anywhere else in the USA, despite of the fact that wages there are not so high. As the time went by Wal-Mart felt that there was too little space in the USA and went globally, winning the hearts of customers in many foreign countries. In 2004 “Wal-Mart bought US$18 billion worth of goods from China, meaning that it was China’s fifth largest trading partner, ahead of the UK, ahead of Russia ahead of Germany” [2]. Wal-Mart is successfully operating in neighboring countries – Canada and Mexico, it is the second largest retailer in Great Britain, and its further plans of conquering include Brazil, China and India.
Indeed, Wal-Mart’s success is obviously growing in the era of globalization. Globalization is the process of denationalization of markets, politics that leads to the raising of global economy. Markets of many countries have become opened and Wal-Mart didn’t hesitate while entering them, besides Wal-Mart had a potential to do so. Hoping to get more profits Wal-Mart have concluded many transactions with a lot of countries, which allowed it to buy goods at cheaper prices and offer them to the population. Globalization created so-called global economy, and large translational corporations are the ones that rule there. Entering more and more economic spheres Wal-Mart received more and more loyal customers worldwide thanks to the well-known brand of Wal-Mart.
Besides, Wal-Mart offers jobs to people who have little or no skills for lower wages. This is beneficial to Wal-Mart in the first place, because as any other company it is interested in paying the lowest compensation as possible. However, the rising of global economy has also led to the rising of competition among workers; thus, less skilled and uneducated people have fewer chances to find jobs than educated ones. So, people agree to be paid less at Wal-Mart than have no jobs at all.
In conclusion, Wal-Mart’s success in the global economy is conditioned on multiple factors, such as effective policy, which it implements, financial potential, low prices of goods that are being sold all over the USA and all over the world, partnerships with other companies worldwide and the great amount of jobs it offers to the population.


Bibliography
1. Furman, Jason. Wal-Mart: A Progressive Success Story. November 28, 2005. www.americanprogress.org/atf/cf/%7BE9245FE4-9A2B-43C7-A521-5D6FF2E06E03%7D/WALMART_PROGRESSIVE.PDF
2. Mitchell, Stacy. Will Wal-Mart Eat Britain? 2005 www.newrules.org/retail/nefspeech.pdf
3. Luce, Stephanie. Welcome to Wal-Mart: Always Low Prices, Always Low Wages. Monthly Review, Vol. 56, April 2005