The New Age of Wal-Mart
The New Age of Walmart
Walmart’s meteoric rise is one of the great super global powers beginning in probably one of the most unlikely settings, the farmlands of Bentonville, Arkansas, a low-wage region of America. During the formative stages, some useful strategies were employed that started this super store on the right track to the extraordinary success it is today. As explained by author Nelson Lichtenstein of The Retail Revolution: How Walmart Created a Brave New World of Business, founder Sam Walton was lucky to begin the journey during the 1960s and 70s, when there was a tremendous surplus of white women working farm labor. These women departed from these positions of meager wages to work for Sam, who at the right place and the right time took (ethical) advantage of them. They were very grateful of his accommodations, along with his tremendous enthusiasm and care for family. A blending of these strategic practices was very successful, as people were perfectly content with whatever wages they received, which leads me to the second strategy.
The company's core principle of keeping wages in check certainly began early on. Walton's luck was sustained by a political shift in the country. The minimum wage which had reached its peak in the mid 1960s dropped by 1l3 from the mid 1970s on. (http://www.epi.org/publications/entry/briefingpapers_min_wage_bp/) This is where the boost occurred because it allowed Walmart to pay just at or above minimum wage. And considering its steady decline in the mid 80s and 90s, it went directly to the company's bottom line.
Nevertheless, Walmart fostered a steady stream of customers over the years with its method of operation which slashed costs and passed savings on to customers in the form of lower prices. The organization's goal has always been to bring the lowest prices possible to its customers, but as we know, that goal will never be reached.
As one of the most powerful corporations on the planet, Walmart had to cope with all
Walmart’s meteoric rise is one of the great super global powers beginning in probably one of the most unlikely settings, the farmlands of Bentonville, Arkansas, a low-wage region of America. During the formative stages, some useful strategies were employed that started this super store on the right track to the extraordinary success it is today. As explained by author Nelson Lichtenstein of The Retail Revolution: How Walmart Created a Brave New World of Business, founder Sam Walton was lucky to begin the journey during the 1960s and 70s, when there was a tremendous surplus of white women working farm labor. These women departed from these positions of meager wages to work for Sam, who at the right place and the right time took (ethical) advantage of them. They were very grateful of his accommodations, along with his tremendous enthusiasm and care for family. A blending of these strategic practices was very successful, as people were perfectly content with whatever wages they received, which leads me to the second strategy.
The company's core principle of keeping wages in check certainly began early on. Walton's luck was sustained by a political shift in the country. The minimum wage which had reached its peak in the mid 1960s dropped by 1l3 from the mid 1970s on. (http://www.epi.org/publications/entry/briefingpapers_min_wage_bp/) This is where the boost occurred because it allowed Walmart to pay just at or above minimum wage. And considering its steady decline in the mid 80s and 90s, it went directly to the company's bottom line.
Nevertheless, Walmart fostered a steady stream of customers over the years with its method of operation which slashed costs and passed savings on to customers in the form of lower prices. The organization's goal has always been to bring the lowest prices possible to its customers, but as we know, that goal will never be reached.
As one of the most powerful corporations on the planet, Walmart had to cope with all