Behind the "Cheap Price" Wal Mart

      BY Tomoe

    
Wal-Mart seeks the lowest prices to its customers.  It pressures to vendors to sell products at low prices.  Those vendors have to lay off the U.S employees and close the factories, so they outsource goods from the low-cost countries.
      For example, “The pressure on Levi goes back 25 years--well before Wal-Mart was an influence. Between 1981 and 1990, Levi closed 58 U.S. manufacturing plants, sending 25% of its sewing overseas(Fishman, 56).”  Some companies have deep relation with Wal-Mart; their main consumer is Wal-Mart so they need to fill the condition even the price is ignored of the cost to produce.
       The low price at the Wal-Mart consists of the imbalance between the price and the costs.  They get benefits from laying in large quantity and sell a large amount.  However they makes seller sell predatory pricing and infringe the U.S jobs.

When I came to America in February, I was so surprised of the cheap price.  For example, one gallon milk is twice as expensive as in Japan.  I thought American buy much quantity so it is so cheap, of course it is true but not only that reason.

 

    For example, in 1994, the most admired and innovation-oriented company in America was Rubbermaid.  It has high quality, and didn't always charge the lowest price.  However Wal- Mart forces Rubbermaid to sell lowest products.  In 2003, the most admired company became Wal-Mart.  Wal-Mart controls other company.  For consumers, the price gives benefits but some companies in America bankrupt. 

     However, some companies didn’t get negative effects.  Those companies planed new strategy.  They started having to change our facility to try to be quicker, better delivery and specialize in high-tech, large products. That required a lot of shipping cost, so they could compete and offset the difference in labor. They are focusing on large-screen, high-transportation-cost products, and also they try to specialize in delivery, making sure that we deliver on a timely basis and low quantities.

To keep American economy, the domestic companies is necessary so they need think about their strategy.

http://www.pbs.org/wgbh/pages/frontline/shows/walmart/