Walmart: The Next Superpower

In the Oct. 6 issue of Business Week, Anthony Bianco and W finish upy Zellner discuss a growing concern: Is Wal-Mart Too Powerful? The article leaves me with separate concern. Wal-Mart (NYSE: WMT) is known for passing on its low-cost advantages to the customer. For example, the article points to a UBS Warburg report suggesting that food prices are 14% lower in food markets where Wal-Mart competes. just now as the authors note, there are several(prenominal) elicit negatives. For one, the company has dominated its suppliers. Wal-Mart, which owns a hefty 30% of the U.S. consumer staples market and 15% to 20% of all music and television sales, plays a role in determining what calculates sold. For example, the company has constrained translate companies to produce clean versions of explicit-label CDs or risk losing come forward on sales. And based on the complaints of a few customers, red-brick anthropoid magazines such as Maxim, Stuff, and FHM have been removed from st ash away shelves. And if you rally thats a problem, Wal-Mart accounts for 28% of Dials (NYSE: DL) sales, 24% of Del Monte Foods (NYSE: DLM) sales, and 23% of Cloroxs (NYSE: CLX) sales. If Wal-Mart has in like manner much power all over these companies now, what will happen when Wal-Marts administer hits 50% at the end of this decade?

Among different negatives, the article points to the fact that Wal-Mart employees earn 20% less than those at organised supermarkets. In addition, Wal-Marts entry into inexperient markets has forced the closure of animate stores: According to Business Week, for either Wal -Mart supercenter that opens in the next ba! sketball team years, two other supermarkets will close. And this is done without creating new jobs. Which brings me to my new concern: the speculation of monopoly pricing. According to a Retail forrad report cited in the article, 30 supermarkets have closed since Wal-Mart modify Oklahoma City. retrieve about this: Wal-Mart is successful because it can leave lower prices than anybody else. But what if nobody else exists to compete? In...If you want to get a enough essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper