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Discuss the impact a Wal-Mart store would have in a small town. Look at the pros and cons a Wal-Mart construction would have on local businesses and how Wal-Mart would respond to concerns of the community.
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Solution Summary
This paper discusses the impact a Wal-Mart store would have in a small town for residents, small businesses, and residents from nearby cities. It specifically looks at the pros and cons of a Wal-Mart construction would have on local businesses and how Wal-Mart would respond to concerns of the community.
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Owners of small businesses located nearby.
Wal-Mart is a discount retail industry that operates world-wide. This conglomerate is also characterized by low-cost production of goods, which gives the company a competitive advantage over its rivals. It also has an aggressive expansion strategy with 8500 stores in 15 different countries under different names (http://en.wikipedia.org/wiki/Walmart, 2012). It also owns distribution centers within close proximity around the country to replenish its stores.
Cons: For small businesses
Wal-Mart- poses a threat to small businesses who sell the same goods and services, because its low prices may drive 'mom- and pop' stores out of business. And the fact that Wal-Mart, a one-stop shopping center, owns distribution centers with a close proximity to the store, reducing lead time, makes it financially difficult for small business to compete and thrive, or even recuperate their loss of market share. These businesses may be forced to lower their prices even further- or relocate. A study by Russell Sobel of West Virginia, found that, it is not actual Wal-mart that's driving small businesses out of the retail market, it is the customers. They take advantage of ...
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