Walmart has one of the most well-orchestrated and organized logistics, supply chains and operations systems of any enterprise globally operating today. It's core competencies in supply chain management, logistics, distribution center and operations management set a global standard in their industry (Stevenson, 2009). The company also has an exceptional level of expertise and skill in launching their supercenters in any location that has the demographic mix of customers that will support its operations. Opening supercenters and getting them profitable while also using these locations as distribution centers in their logistics networks is what Walmart does exceptionally well (Stevenson, 2009). Given the sheer magnitude of their operations however, they inevitably impact the local economies they enter into in both a positive and negative way.
Assessing the Pros and Cons of Walmart
For the small businesses located nearby, Walmart signals a major shift in the overall economic foundation of the community and if it is sparsely populated area, the entire state. For the small business, the negatives are much greater price competition,...
Food retailers argue that Walmart takes the quality of food down and that its lack of concern over nutrition actually leads to obesity occurring more often in the cities and town they operate in (Courtemanche, Carden, 2011). The small business owner would also view their merchandising, global branding and marketing strategies, and tendency to become cutthroat in their competition on electronics as very intimidating.
Despite these weaknesses, Walmart has been known to increase the price of real estate in small towns and economically challenged areas by investing heavily in logistics and operations facilities, which tend to take many acres to build. The small businesses owners in a small town could rejoice over the increase in property values as they have done in New Orleans for example (LaRose, 2011). The small businesses could also…
