We were talking in class and alot of people have alot of different views on this.

What are your views on HUGE store chains like Wal-Mart, McDonals ETC. Stores that basically have the entire market under their hand.
Their employee pay, their importing trends, putting out other business' ETC...

I want to get some feedback on here. I'll post my views later when I have time to type it out.

 

I ain't got no beef with McDonald's. They provide jobs for high schoolers, ability to take leadership roles, and make America fatter. There are tons of other choices - were you aware that Thailand has thousands of KFCs, and McDonald's has only been there less than 10 years? (KFC's been there since the 80's - they own the market there).

Wal-Mart is a different story. They were the primary examples for most of my business classes at the Univ. of Tenn. - they've definitely become the best in many ways. There are many pros and cons to Wal-Mart, but I personally have a huge distaste for Wal-Mart.

They're the leading importer from China. Doesn't mean a whole lot, since they're also the leading seller of goods. Wal-Mart puts huge pressure on their vendors to give them the lowest price. If Coca-Cola wants to sell their product at Wal-Mart, they need to drop the price to whatever Wal-Mart demands. If they don't, Wal-Mart can sell Pepsi for $2 and Coca-Cola for $6 - that will cause people to buy Pepsi and not Coke, until Coca-Cola decides to give in.

Let's say Coca-Cola drops what they charge Wal-Mart - Coke is a publicy traded company, therefore there are huge pressures to meet "expert's expectations" on profits. If their profits drop because they have to cut profits with Wal-Mart, that means they'll charge higher prices to all other stores that don't have the ability to put on pressures that Wal-Mart does. Coke has to make profits, and if they aren't making it with Wal-Mart, they have to make up for it elsewhere.


Wal-Mart does provide jobs to an unbelievable amount of people, but at the same time they really are pushing out the mom and pop stores. It's happened a few times around Nashville that I know of. The Walton family is unbelievably wealthy...

On a side note... my wife's roommate at UT was from Arkansas, and her family was very wealthy. Supposedly, she dated one of the Walton kids during high school and heard horror stories about how Sam Walton originally gained the power and got ahead in the industry. She never went into much detail, but in the two years I knew her, she always refused to go to Wal-Mart.

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I also remember talking about Wal-Mart and their initial attempt to break into the Mexican market. They took out a bunch of companies that stood in their way, and were seen as a huge problem to the Mexico economy. I'm sure that's changed, because Mexico wouldn't allow them to stay if they didn't get something in return. They're out to be the best, at any cost. Some call it unethical, others say it's just business.

 

... i know it's a tiny lil off topic when i say this, but i just REALLY want to add this since you went on about walmart .... ever seen the episode of South Park, where "Wall Mart" (talking about the same wal-mart obviously) well that episode was emphasis about how walmart is bad for other business, cuz they sell everything for low prices and the small businesses couldn't compare. another thing South Park pointed out is that there are customers, sadly enough, are addicted to wal-mart.

if you guys don't think it's possible that someone can be addicted, and i mean literally addicted, to a store, think again, it's very well possible. ask my brother's fiancee, she's an example. she's actually addicted to wal-mart, she MUST go there every single day, otherwise she'll throw a tantrum, and we often get irritated with her 02.gif (thank god i moved out of my mom's house before the unthinkable happend, that's how bad she was)

 

I had a friend who would spend hundreds of dollars a week there. She was addicted, and couldn't afford it. She's better now, with the help of friends.

I hate going into Wal-Mart. It's too big, takes forever to get to what I want. I avoid Wal-Mart at all costs.

 

horrary for capitalism!!!! hail.gif

 

I hate walmart, they need more cashiers where I'm at. I'd have no problem if they could speed up service. I hate waiting in line. Walmart is very convient for me. I try to get what i need for 2-3 weeks at a time so I don't have to stand in line. Sometimes I just wont go even when I need to go because the lines suck so badly .

 

Im with you majiktib about the golden arches.

Walmart does do a hell of a job with their distribution system and providing products. BUT, I hate the fact that its just about the only place to get stuff anymore. Same goes for Home Depot and Lowes. Mom and Pop stores are closing in record numbers and other companies can not keep up. I think in most cases this is bad. Lack of choice leads to lack of quality. I dont see anything changing soon and walmart will remain at the top.

 

Around here we only have a walmart and Kmart. Walmart has kmart beat by double the size and products. It is always busy and they have like 30 registers and 8 people working them. But really you don't have much choice unless you want to drive like 30 min to the next city which has an even bigger walmart but more choices of stores. I really don't think alot of people like walmart but most have no choice when it comes to everyday purchases because of price and availability.

I had just seen an article somewhere online about walmart being on a small decline or at least slowing down now that more people were trying to support the mom and pop stores but I can't remember where. I think thier hold on the market will die down or at least won't increase because despite the purchasing power they barely ever have anything majorly new or exciting. The one here just remodeled like they do about every 7 years and still had almost nothing new and even took stuff out.

It sucks though because despite walmart making so much money they don't take care of the stores very well at least around here. There is supposed to be a target and another store coming and everyone can't wait.

 

FYI, KMart has filed for bankruptcy at least once. I've heard "experts" say it's because they can't compete with Wal-Mart.

If the big guys can't compete with Wal-Mart, how can mom & pop shops?

 

I know kmart filed but thats because walmart has them beat. They can't keep up and they closed alot of stores. The store here pretty much is just existing and doesn't move forward and it really can't because theres no need for it here with walmart right down the road. Sure kmart has a few brands you can't get at walmart but that doesn't mean walmart can't compete by having the same item just in a different brand name.

I wouldn't say mom and pop stores are keeping up theres no way they ever will. I just meant more people that don't like walmart are supporting them more and in turn hurting walmarts income.

I don't like walmart but like I said before I don't have alot of choices and I don't go there and support them unless I have to and I rarely make big purchases from them if at all.