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Walmart - America and the World Watch

Walmart - America and the World Watch

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America and the World Watch

Wal-Mart has caused a revolution to the inventory systems by the use of computers. One

of the respondents in the clip named Mr. Smith, Wal-Mart takes customer’s considerations first

before the suppliers. Prices are fixed by the customers and then fixed at the customer rate to the

supplier. This is contributed by the fact that Wal-Mart fear that if they do not meet customer

demands, they may lose them. This approach has made turned manufacturers poor victims

because they are forced to sell their products at the lowest profits that may sometimes result in a

loss.

From the documentary, we can conclude that Wal-Mart is a representation of cost driven

low-priced approach towards competition. One of the commentators of the documentary

concludes that Wal-Mart’s model is winning out customers by using innovative technological

ideas to track sales, supplies and purchases.

The documentary outlines how Wal-Mart is employing the use of “opening price points”.

This are described as the cheapest items selected for each section which are advertised with large

signs on how the products are cheap. Mr. smith, one of the commentators, is amused on how

Wal-Mart is using such a trick to attract customers even though other products in the section may

be expensive compared to other stores.

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A former manager of Wal-Mart claims that once you have shopped in their stores, “they

got ya”. This is because they create a perception to the shopper that their products and services

are the cheapest in the market through opening price points. In the determination of whether Wal-

Mart is good for America, the conclusion will be “No” because Walmart takes advantage of both

the customer and suppliers. While some products are advertised as cheap, other products are

expensive than others in a particular section as compared to other chain stores. Wal-Mart is also

pushing manufacturers out of their respective industries because they are hardly making any

profits. Wal-Mart is giving advantage to emerging markets such as China a competitive

advantage because of their low costs of production implying that they can make profits even at

the lowest prices.

How important is China to the world?

From the documentary, most of the commentators are complaining China and the

pressure that is forcing manufacturers to move to other countries where the cost of production is

lower. The commentator gives the impression that it is unfair for Wal-Mart to make such huge

profits for goods manufactured from other countries like China rather than promoting products

manufactured in the US. China has the largest labor market that are lowly paid making the cost

of production lower. The commentator gives the impression that the US made a mistake when

they opened trade with China. This is because average American consumers cannot afford

American manufactured goods hence they will go for the Chinese products.

The documentary also suggests that China may overtake America economically. This

may be true because most of the main manufacturing firms in the US are outsourcing their

services to China hence making their own citizens jobless. China is growing economically and is

a major manufacturing zone in the world. China uses simple and cheap technologies in the

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Name Instructor Date of submission America and the World Watch Wal-Mart has caused a revolution to the inventory systems by the use of computers. One of the respondents in the clip named Mr. Smith, Wal-Mart takes customer's considerations first before the suppliers. Prices are fixed by the customers and then fixed at the customer rate to the supplier. This is contributed by the fact that Wal-Mart fear that if they do not meet customer demands, they may lose them. This approach has made turned manufacturers poor victims because they are forced to sell their products at the lowest profits that may sometimes result in a loss. From the documentary, we can conclude that Wal-Mart is a representation of cost driven low-priced approach towards competition. One of the commentators of the documentary concludes that Wal-Mart's model is winning out customers by using innovative technological ideas to track sales, supplies and purchases. The documentary outlines how Wal-Mart is employing the use of "opening price points". This are described as the cheapest items selected for each section which are advertised with large signs on how the products are cheap. Mr. smith, one of the commentators, is amused on how Wal-Mart is using such a trick to attract customers even though other products in the section may be expensive compared to other stores. A former manager of Wal-Mart claims that once you have shopped in their stores, "they got ya". This is because they create a perception to the shop ...
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