Essay Title: 

How can Walmart keep low prices

March 24, 2016 | Author: | Posted in english, literature and language

Name

Professor

October 16 , 2006

How can Wal-Mart Keep Low Prices

I

When Sam Walton opened his first store , the Five and Dime , he had no idea that he would become a success . He started his first store with one vision – to keep prices as low as possible . He knew that by keeping the prices low , his profit would not be as large as his competitor ‘s but he also knew that he could compensate this by the volume of sales . Soon he was opening new stores in other states [banner_entry_middle]

and its sales reached millions of dollars . At present , Wal-mart is the biggest corporation surpassing its competitors (Jim Hightower ) It has over more than a hundred retail stores all over the world making the Waltons some of the richest people in the world . S . Robson Walton is ranked by London ‘s Rich List 2001 as the wealthiest human on the planet having more than 65 billion surpassing Bill Gates (Jim Hightower

Its present status was however not attained overnight . There were several strategies adopted by Wal-Mart which made it the world ‘s largest retailer . The first is the use of technology . Wal-Mart was the first to use the Universal Bar Code system . As the largest retailer , Wal-Mart was able to force manufacturers of products to adopt a common labeling called the bar code . The bar code contains details about the product which tells the retailers information such as how many of the said products have been sold and how many are still remaining . This system helped improve the way inventories are done in stores . With the bar code system , retail store owners no loner need to hire employees to conduct the inventory and the inventory system is now more accurate

Another business strategy adopted by Wal-Mart to keep prices low is its adoption of the corporate culture of frugality . The Waltons were very careful about spending their money and they lived a very simple lifestyle . They also demanded frugality from their employees Frugality is so imbedded in its culture that even the company ‘s headquarters is located in Arkansas which is very old and looks dull The executives of the company do not ride in fancy limousines and nor do they reside in expensive hotels . Instead , the executives shared budget-hotel rooms with their colleagues (Caroline Wilbert

The corporate culture of frugality was manifested in the way the wages of their employees are being paid . It is said that the company pays an average wage of 9 .68 an hour which is definitely not enough for the employees to maintain a decent standard of living (Gregory Heires There have been complaints that the said company even compels its employees and managers to work overtime without paying them additional compensation for overtime work . The employees do not have adequate health care insurance and other benefits . Health care insurances are essential especially for employees who are earning barely enough for their daily living . Even if these employees get sick they will get some… [banner_entry_footer]

Comments Off on How can Walmart keep low prices

Author:

This author has published 9190 articles so far. More info about the author is coming soon.

Comments are closed.