Mart offers items at the most affordable prices, leading competitors to struggle against these remarkable prices, despite the ethical concerns surrounding them. The matter has been raised multiple times, and Wall-Mart representatives justify the company’s practices by stating their full compliance with China’s Trade Union Law. However, the world’s biggest retailer is often criticized for its lack of ethical principles, which causes many individuals to oppose it. In order to maintain these inexpensive prices, Wall-Mart also pays its employees, both domestically and internationally, significantly low wages.
The issue with the workers is acknowledged, but not enough action is being taken to address it. Increasing wages would have a significant impact on Wall-Mart’s overall income due to its large workforce. Regarding competitive advantages, Wall-Mart has multiple advantages over other companies in its industry that create challenges for its competitors. One major advantage is their unmatched low prices.
According to a man featured in the documentary, the cost of an OLL is approximately $5 at Wall-Mart when manufactured in China, whereas it would be around $70 or $80 if produced in the United States. These unbeatable prices pose a challenge for competitors, while Wall-Mart’s reputation for offering affordable products further lures customers away from rival companies. Moreover, being the most profitable player in the industry, Wall-Mart enjoys the benefit of numerous companies striving to present their products to them, giving them an additional advantage.
Secondly, Wall-Mart has the advantage of global expansion, enabling them to attain worldwide dominance. They have effectively internationalized their products in countries like China, Brazil, and Germany. Wall-Mart is widely acknowledged and holds a strong presence with 1 700 stores in 10 countries beyond the United States. Their stores are renowned for having friendly and hospitable employees. With their cost-effective prices and capacity to expand globally under an established brand name, Wall-Mart possesses notable advantages over its competitors in the TTS industry.
As competition in the global marketplace grows, many companies will continuously try to compete with Wal-Mart’s price and good name. The biggest challenge that Wal-Mart will face as it attempts to further expand its position is dealing with competitors.
As companies worldwide expand, they aspire to achieve excellence. Wall-Mart stands out as the most successful among its competitors, and smaller companies acknowledge this fact. For Wall-Mart to maintain customer loyalty, it is essential for them to prioritize front-end service once again. In order to prevent competing companies from surpassing Wall-Mart’s level of success, the corporation must enforce policies and ensure that suppliers remain efficient and consistently strive for improvement.
