Wal-Mart Research Paper Example | Topics and Well Written Essays - 750 words - 1

Wal-Mart - Research Paper ExampleFor small businesses operating locally the entrance of Wal-Mart would have a series of disadvantages at a first level, Wal-Mart could provide to consumers products that would not be avail competent through local stores (Hill & Jones 2007). In fact, in Wal-Mart consumers would have the chance to choose among a high persist of products as a result, consumers would prefer to visit Wal-Mart, instead of local stores, for their shopping. Moreover, Wal-Mart, as a megastore, is able to keep the price of its products low (Hill & Jones 2007). The owners of local stores are often unable to decrease the price of their products/ servings due to the fact that their sales are at a relatively low level, at least compared to the sales of megastores (Hill & Jones 2007). Wal-Mart has been already accused as leading many owners of small businesses to stop business activities, a fact that is related to the non-potential of these individuals to lower the price of their products (Kotler & Armstrong 2009, p.410). In other words, local businesses would be forced to close in the case of the entrance of Wal-Mart in their market such decision would be unavoidable mostly due to the following two reasons local stores would not be able to provide to consumers the high range of products available at Wal-Mart. Also, local stores could not offer their products at the price that Wal-Mart does. The advanced technology available at Wal-Mart could also lead to customer service of high quality, at least compared to local stores (Armstrong et al. 2009, p.380). A problem of unfair competition would possible appear in the above case. At this point, reference should do to the study of Guy (2007) where the following issue is highlighted before allowing the establishment of a megastore in their town, the authorities of a small town would primarily check whether the expression/ design of their town allows such plan