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International Business: Wal-Mart Assignment

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    Mart sells items for the lowest costs possible. This makes competitors unable to compete with these amazing prices, though this is ethically wrong. This issue has been addressed on several occasions, and Wall-Mart associates respond by saying that the company currently fully obeys China’s Trade Union Law. The world’s largest retailer fails to be based upon ethics, which enable many to be against this company. To keep these low prices, Wall-Mart also has very low wages for all of its workers- inside and outside of the country.

    This presents a problem with the workers, but to much action is taken to change this. With the number of people which Wall- Mart employs, a raise in the pay would greatly affect the gross income of the company. Question #2: Identify and explain two competitive advantages that Wall-Mart currently has over other companies in its industry. Answer: Wall-Mart has many advantages over other companies in its industry that pose problems for competing companies. One great advantage that they have is their unbeatable low prices.

    In the documentary, one man said that the price of a OLL is about 5 dollars at Wall-Mart when made in China, but would be around 70 or 80 dollars if it was made in the United States. These prices are impossible to beat for competitors, and in addition, Wall-Mart is already known for these prices. When looking for cheap items, people will easily turn toward the lower costs at Wall-Mart rather than its competing companies. In addition to this, since this company is the most profitable in its industry, many companies want to pitch their products to them, giving them an advantage once more.

    Secondly, Wall-Mart’s ability to expand abroad as it has makes it simple for them to have worldwide domination. They continuously have to globalize their products as they did in China, Brazil and Germany. Wall-Mart is very well-known, since it has 1 700 stores in 10 countries outside of the United States. They are known for happy faces, which are seen each time someone enters a Wall-Mart store. With its low prices and ability to expand abroad with a strong company name, Wall-Mart is automatically given great advantages over other companies in TTS industry.

    Competition is still growing with each day, and many companies will continuously try and compete with this company’s price and good name. Question #3: In your opinion, what is the biggest challenge that faces Wall-Mart as it attempts to further expand its position in the global marketplace? Explain. Answer: As Wall-Mart continues to expand its position in the global marketplace, it may face many challenges. In my opinion, the biggest challenge that it will have to face is dealing with competitors.

    As companies throughout the world expand, they strive to be the best. Wall-Mart is the most successful out of all of its competitors, and these smaller companies realize this. This company must focus on service on the front end once more, to ensure that their customers stay loyal to them. Competing companies could band together to surpass the level of success reached by Wall-Mart, and to ensure that this will not happen, the corporation must enforce its policies and guarantee that their suppliers remain efficient and strive to improve constantly.

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