WAL-MART

Wal-Mart



Abstract

In a world where most retailers are categorized as having a monopolistic competition market structure, Wal-Mart Stores Inc. appears to have an oligopoly market structure. Nevertheless, because there are far too many retailers to deal with, then they also have a monopolistic competition market structure. Regardless, Wal-Mart would rather have it this way because it has not hurt them at all by having competition.

Wal-Mart

Introduction

Wal-Mart is a company that has always presented the image to go the extra mile to meet customer satisfaction. They have been able to grow in times when most companies were facing hardship. The implementation of walmart.com in January 2000 was a major step for the Wal-Mart organization. Their globalization, e-business, and ethics have been essential in the success of this and any company. Many people claim the ethics of Wal-Mart has changed greatly, and not for the better, since the death of Sam Walton, founder of Wal-Mart. (Talley 2009)

Internal & External factors that influence compensation strategies

New stores are being built world wide at unbelievable rates. Stateside they are as many as two stores in each city. Naturally, it has become a household name. In the process of globalization, many companies have moved their businesses over seas. The fact being that it is much cheaper running and maintaining factories off shore then it is in the United States. Wal-Mart regulates companies in Mexico and Bangladesh and scores of under developed countries. In the simplest fashion it get what it wants when it wants it. (Silberner 2006)

Wal-Mart does not have to worry about a thing, not even innovation. That is what they use their retailers for. Wal-Mart has no troubles making business or profits, its retailers on the other hand; compete to have their merchandise in Wal-Mart stores. It is they who need to create products, which customers will purchase. With this objectivity in mind, there are no competitors, and higher prices are reasonable. This benefits both parties since the final dollar is a key factor to most organizations. Wal-Mart represents America. We are its voice and we make or break them. (Stilgoe 2008)

Wal-Mart Stores Inc. is tantamount with low prices and name brand quality products. The company basis of success and foundations can not be credited to the current CEO Lee Scott, but more credited to the founder of Wal-Mart, the famed Sam Walton. The Wal-Mart formula for success is simply their relationship with customers, employees, and technology that assists in forming relationships with their suppliers; places Wal-Mart Stores Inc. as the top discount retailer.

Ethics play a large role in the success of any organization. The founder of Wal-Mart, Sam Walton created a philosophy he called the "3 Basic Beliefs". The first is defined as Respect for the individual, believing "Our people make the difference" (Wal-Mart 2004). No matter what colour, background, or lifestyle, each employee is treated with respects. The second belief, Service to our customer, is explained as maintaining the lowest price and the best possible service. This is an attractive selling point to any ...