Wal-Mart, the world's leading retailer, finds itself in an inquisitive situation in USA. Its critics have made numerous calls and attempts by the government to restrict its operations across the United States of America. It cannot directly function as a retailer consequently; the company's strategy has been to build up a firm-to-firm wholesale cash-and-carry process. In addition, Wal-Mart is playing a leading role in helping develop modern supply chains in the USA. Wal- Mart has continuously defined and embraced value in service delivery. Value can be defined as the final product of the firm, which comprises of the interior system, supply chain, traditions, logistics, processes, rewards, organizational configuration, undertaking and resources that generate a yield that satisfies the need of a specific market.
What are the ethical issues associated with Wal-MartpercentageuFFFDs extensive sourcing of low-cost products from China
Some of the major ethical issues posed by Wal-Mart Company include nation-state sovereignty, health risk products, predatory prices, and supplier issues. The USA sovereignty over China is downplayed with the vast importation of numerous products from China. Wal-Mart is in record to have imported products from China worth $ 18 billion at the begging of the twenty first century and it is approximated to clinch $30 billion at the end of the century. This rate of importation from China reduces the USA sovereignty in terms of production and satisfaction of the needs of its people. More over, some of the products imported have been tested and found to pose health risks to human beings and this has seen recalling of some of the China- manufactured products by Wal-Mart.
Wal-Mart’s competitors have cited the low prices offered by Wal-Mart on its products as predatory. It is imperative to note that, the low prices offered by Wal-Mart have adversely affected its competitors, which has forced majority to close down their businesses and this has harmed the community economically. However, the top competitors, competing nationally and internationally remain functional though under a market environment characterized by economies of scale. Wal-Mart has shaped up the competition on pricing, the size of the stores, layout, location, retail mix, and innovation. It is imperative to note that, the top retailers uprightly integrate many operations, which include purchasing, manufacturing, marketing, and delivery. These operations give the top competitors a considerable cost benefit over small-scale rivalry.
Based on your experience, does Wal-Mart sacrifice product quality in order to offer customers low prices ¾ always
Essentially, Wal-Mart does not sacrifice quality to offer low prices to customers. Referring to the Five Forces Model, Wal-Mart’s position as the leading retailer in the world is strong overall and the rivalry amid competitors is weak. The fact that, the market is crowded but Wal-Mart manages to offer the lowest overheads, prices, proceeds, and market share has prompted its competitors to cite the products imported as cheap and of low quality. This might not be the case, since Wal-Mart has maintained strategy of keeping its profits as low as possible to maintain the customers. This strategy has been strengthened by the weak threat of substitute products. In addition, Wal-Mart has exerted an immense deal of endeavor in making definite they are inventive and meeting customer needs. More over, the bargaining command of suppliers is weak consequently; Wal-Mart would be their leading account.
What advice would you give to critics of Wal-Mart in order to enhance their impact on the company? To enhance their impact on governmental and regulatory agencies? To enhance their impact on society.
The critics of Wal-Mart should embrace modern ways of posing competition on Wal-mart. For instance, innovative means of advertising, distribution and improving the quality of the products offered to customers. In addition, strong strategies of retaining customers should be embraced to enjoy fair competition with Wal-Mart. This will adversely influence the governmental regulatory agencies and the society in a positive manner in terms of fair market share and satisfaction respectively.