Wal-Mart and Pricing Policy

Paper Summary:

This paper explains that the giant retailer Wal-Mart's achievement of a long-term every day low-pricing strategy, which gives it a competitive advantage over other retailers, creates the perception of Wal-Mart as a threat to communities and the general economy. The author draws three positions from the literature regarding this controversy: (1) Wal-Mart's everyday low-pricing strategy is detrimental to the economy; (2) Wal-Mart's everyday low-pricing strategy is NOT detrimental to the economy but rather is merely a current dominating force in the historical evolution of the retail industry and (3) there are both costs and benefits to the economy as a result of Wal-Mart's every day low-pricing strategy. The paper concludes that, from an economical standpoint, Wal-Mart is not necessarily detrimental to the economy but rather is a force of change, which will continue as competitors move in and consumer demand shifts.

Table of Contents
Introduction
Analysis
Key Managerial Economic Ideas
Claims against Wal-Mart
Publication 1
Publication 2
Publication 3
Rejecting Claims against Wal-Mart
Publication 1
Publication 2
Publication 3
Perspectives
The Entrepreneur
The Small Businessperson
The Corporate Retail Manager
Evaluation
Comparing and Contrasting Publications
Faulty Reasoning

From the Paper:

"Fishman (2003) comes from the supplier's side writing about those who have been detrimentally affected by Wal-Mart. Fishman is against Wal-Mart outsourcing overseas which have increased U.S. unemployment in the manufacturing sector. He blames this on Wal-Mart's "relentless push to bring every day low prices" and its enormity that allows Wal-Mart to be able to do this, and that we are "shopping ourselves out of jobs". In contrast, Anderson (2004) perceives that Wal-Mart is good for communities as it allows residents to buy more goods due to lower prices with the benefit of having a larger variety of items to choose from than before, and time saved by being able to shop at one store for all goods ("one roof"). This makes the consumer better off than before Wal-Mart moved into their community. Anderson believes that small businesses are not forced to close but rather, consumers choose to shop elsewhere."

More papers on Wal-Mart and Pricing Policy:

• Term Paper # 99563 : "Wal-Mart and Capitalism"
• Research Paper # 92616 : "Wal-Mart's Global Success"
• Case Study # 112503 : "Organizational Behavior at Wal-Mart"

APA Citation:

MLA Citation: