Founded by Sam Walton in 1962, Wal-Mart is the world leader in retail sales logistics. Wal-Mart is a large chain of discount stores located all over America that has a large array of products. Everyday thousands of people shop at Wal-Mart to get quality products at the lowest prices. For years its motto has been “Save money. Live better.” Wal-Mart believes that the lowest possible prices for consumers are good for America. Although the lowest possible prices on quality products are good for consumers, it is not good for America.
First, Wal-Mart’s low prices put competing stores out of business. The RCA television-manufacturing plant in Circleville, Ohio is a clear example of this. This plant provided the city with good jobs, benefits and a good pay. But after a substantial loss of production orders, they were forced to close in 2003, leaving a thousand people out of work. They lost these production orders to large discount stores like Wal-Mart that carried the same product but sold it at a significantly low price.
Also, Wal-Mart and other giant chains made mass global retailers more powerful than manufactures. Take Rubbermaid for example, Rubbermaid’s profits increased when they first partnered with Wal-Mart. But when they had to raise their prices due to a price increase in resins one of their key components, Wal-Mart refused and dropped Rubbermaid’s products. This impacted the company tremendously; it was one of the first signs of the decline of Rubbermaid. They eventually had to sell out to Newell, a major competitor. This is an example of how a retailer, Wal-Mart, is more powerful than the manufacturer, Rubbermaid. Wal-Mart does this to all its manufactures. They manipulate them to get exactly what they want. It is astonishing how they can make or break a company.
Wal-Mart began going overseas to Asia to find products. Low cost imports from Asia became a vital component to Wal-Mart’s low opening price point strategy. Since they were turning...