2006-08-21 04:42:02 · 5 answers · asked by jinkies42 1 in Business & Finance ➔ Corporations
Wal-Mart has a good business plan. Wal-Mart started out as a small business not too long ago. They were innovative and offered great value to their consumers, which resulted in rapid growth. People blame them for driving out smaller businesses -- but what they do is increase competition, and last time I checked competition is a good thing. Other small businesses should learn to innovate, as Wal-Mart once did, and they too will be able to compete.
As far as Wal-Mart scandals, sure they've had some, but what large company hasn't. It's just that they are so successful that everyone is watching, and once something bad happens, it's widely publicized.
2006-08-21 07:09:02 · answer #1 · answered by mr_law_jersey 3 · 0⤊ 0⤋
Hm. The dark side of capitalism. If left to its own devices it will eat itself.
Wal-Mart gets press for locking in cleaning crews and so on, but how they screw us over is by:
1) running small business under
2) after running said businesses out, in many places their store will be one of the largest employers, which they then use to their advantage to drive down wages and benefits for the population and region.
3) They are large enough to absorb below market prices on certain items - essentially inventory dumping, which is only illegal if you're a foreigner, but not if you're an American putting other US businesses out.
Small businesses should learn to innovate? Hate to break it to you, but in corporate america, usually the big guy does win - try starting an oil company, phone company, making an operating system, etc.
Doesn't anyone else realize that while unrestrained capitalism provokes more short-term competition, but will logically end in either an oligopoly or monopoly in a given market? A competitive advantage, once had, can only be lost through mismanagement. Wal-Mart is a budding monopolist.
2006-08-22 04:24:29 · answer #2 · answered by Shofix 4 · 0⤊ 0⤋
WalMart abuses their vendors.
They take Advantage of their employees.
They replace good paying jobs for minimum wage jobs.
They bully merchandisers.
They cut prices below wholesale cost so others cannot compete and they monopolize markets.
They demand tax breaks and other concessions from municipalities to subsidize their multi-billion dollar company.
2006-08-21 13:25:32 · answer #3 · answered by hepzibah 1 · 0⤊ 0⤋
Gee, I guess by having good prices on a wide variety of merchandise so people can afford to buy the things they need?
2006-08-21 12:32:39 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
I didn't know that they were.
2006-08-21 11:53:50 · answer #5 · answered by Joe K 6 · 0⤊ 0⤋