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