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Essay / Research Paper Abstract
A 4 page paper outlining the method by which Wal-Mart enters a new market; undercuts prices on a scale that local mom-and-pop stores cannot match; puts those stores out of business; and then raises its own prices to pre-Wal-Mart levels when local consumers have no other choices available to them. Wal-Mart is not the only big-box store that puts pressure on small local business; Home Depot and Lowe’s have the same effect without using Wal-Mart’s predatory practices. Bibliography lists 8 sources.
Page Count:
4 pages (~225 words per page)
File: CC6_KSWalLittleGuys.rtf
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Unformatted sample text from the term paper:
sings a song about "the little guys," the mom and pop businesses of towns of all sizes. Theyve worked to help build the town over the years, but they
arent large enough to gain any control over suppliers or even to achieve large-quantity pricing on the items they stock in their stores. Wal-Mart - and to a lesser
extent Home Depot, Lowes and even Starbucks - breezes into town and everything changes. In the case of Wal-Mart, the most frightening changes occur after all the mom-and-pops are
gone... Closing the "Little Guys" The cry is raised when Wal-Mart applies for zoning changes and local permission to enter a new market,
but the cry never is loud enough to create more than only passing resistance. The complaint is that Wal-Mart will breeze into town, undercut local businesses, close local business
and then raise prices. Though Wal-Marts official stance is that it never would do such a thing, history and evidence indicate otherwise.
Sam Walton built Wal-Mart on strong ethical principles, and much of the shift occurring in recent years took place only after his death in 1992. The bottom line, however,
is that for all its innovation in retail, Wal-Marts ethical base needs to be strengthened. Positive Aspects Formerly the worlds largest retailer, Wal-Mart
now has surpassed General Motors to become the worlds largest company of any kind. Despite left-leaning views of any corporation as an evil entity bent on profiting at all
costs, the simple fact is that Wal-Mart did not attain its current position by setting out to be predatory in snaring the greatest number of consumers possible (Davidson, 1995).
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