Causes Of Walmart's Expansion

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This research paper will explain what Walmart is, how it became so big and what the

reasons behind its rapid expansion are since its foundation in 1962. This paper will also explore

Walmart’s effect on the retailer market through its expansion. Walmart is one of the biggest

retailer in the world. Its founder Sam Walton started and built upon his retailer empire with one

simple philosophy: Offer lower prices and more savings than everyone else. This strategy has

driven Walmart into success and shaped the American shopping culture around retailers.

In the beginning Sam Walton started his career in business with opening a variety store

called five and dime. Back then the business ideology used in Walmart’s business plan today was
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This added to

the appeal of Walmart as a one stop location to shop for everything, at the lowest market prices

Walmart’s success, although it has had major contribution, wasn’t only from the “buy

cheap, sell cheap” business model. Walmart was becoming so efficient and good at moving

goods that the system in place for labeling and pricing wasn’t good enough. This is where

Walmart’s effect in retailing technology and information weigh in.

Walmart started the use of universal bar codes. Universal bar codes are black strips we

scan to get pricing, giving the retailers information of the volume being sold, of the products.

Because Walmart was a huge retailer it was able to force manufacturers to start using similar

labeling. Universal bar codes have since become the industry standard way of labeling.

Although universal bar codes may seem like an easier way of pricing, Walmart was able

to exploit the information behind the bar codes and since have become even more efficient at

saving costs and selling products. Bar codes gave Walmart the ability to track how much was

being sold at any given time. Walmart also was able to track when and where it was
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As the shopping craze and cheap products effect on consumers wore off, people started to

notice the negative effects of cheap prices Walmart brought.

At this point as consumers became more aware and local grocers and variety stores gather

up more regular customers, some economists say Walmart had reached its growth potential.

Walmart, as it had done for decades had to keep its prices low. In an environment where

consumers are more aware of their spending habits and its effects on the local business had made

So in the end to keep its business practice and mantra left behind by its founder Walmart

had to increasingly send manufacturing jobs to offshore cheaper countries. Employ only at

minimum wages, stop unionization and keep on cutting more corners to keep the prices lowered.

Ultimately consumers have to choose between the lower deals in Walmart and fuel its corporate

structure or become more aware of their spending to keep a balanced local economy. As it has

always been Walmart is fueled and grown by the large volume of consumers every day entering

and exiting its deal packed

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