Walmart

Definition

Walmart is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. As one of the largest companies in the world, Walmart's operations and business model have significant implications for the global economy and the process of globalization.

5 Must Know Facts For Your Next Test

1. Walmart is the world's largest company by revenue and the largest private employer, with over 2.3 million associates worldwide.
2. Walmart's low-cost business model and aggressive expansion strategy have had a significant impact on local economies, often leading to the closure of smaller, independent businesses.
3. The company's global supply chain and outsourcing practices have been criticized for contributing to the exploitation of workers in developing countries.
4. Walmart's dominance in the retail sector has enabled it to exert significant influence over suppliers, forcing them to meet strict cost and quality standards.
5. The company's use of technology, such as data analytics and automation, has transformed the retail industry and influenced the way consumers shop.

Review Questions

• Explain how Walmart's business model and global expansion have impacted local economies and smaller businesses.
  • Walmart's low-cost, high-volume business model and aggressive expansion strategy have had a significant impact on local economies. By undercutting prices and offering a wide range of products, Walmart has often led to the closure of smaller, independent businesses that are unable to compete. This has resulted in the loss of jobs and the concentration of economic power in the hands of a few large corporations, which can have negative consequences for community resilience and diversity.
• Describe the criticisms surrounding Walmart's global supply chain and outsourcing practices, and how these issues relate to the process of globalization.
  • Walmart's global supply chain and outsourcing practices have been criticized for contributing to the exploitation of workers in developing countries. By sourcing products from low-cost manufacturers in countries with lax labor regulations, Walmart has been accused of perpetuating unfair working conditions, low wages, and unsafe working environments. These practices are seen as a byproduct of globalization, where multinational corporations seek to maximize profits by taking advantage of disparities in labor and production costs across the world.
• Analyze how Walmart's use of technology and data analytics has transformed the retail industry and influenced consumer behavior.
  • Walmart's extensive use of technology, including data analytics and automation, has had a profound impact on the retail industry. By leveraging vast amounts of consumer data, Walmart has been able to optimize its supply chain, inventory management, and marketing strategies, allowing it to offer competitive prices and tailored product selections. This, in turn, has influenced consumer behavior by shaping their shopping habits and preferences, as well as the overall structure and dynamics of the retail sector. The company's technological innovations have set new industry standards and pushed other retailers to adapt their own practices, further contributing to the transformation of the global economy.

Related terms

Globalization:

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Supply Chain: The network of organizations, people, activities, information, and resources involved in the production, delivery, and sale of a product from supplier to consumer.

Outsourcing:

The practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house by the company's own employees and staff.