Smith, H. & Young, R. (Writers), & Young, R. (Director). (2004, November 16). Is Walmart
good for America? [Television series episode] In R. Young (Producer), Frontline.
Boston, MA: WGBH Public Broadcasting Service
The story of Walmart’s expansion and market ownership is explored by looking at its supply chain and evolving business plan. Walmart flipped the structure of manufacturer-retailer relationships by demanding manufacturers sell their goods a specific cost, lower than what manufacturers in the U.S. presented. This was possible and widely practiced by Walmart because of its increasing use of technology to provide real-time data on consumer purchase preferences, up to the month, week, and time of day. Walmart pulled products and prices from manufacturers; if manufacturers could not deliver, they would either lose the contract or be forced to outsource/offshore their labor to China in order to remain competitive. Over 80% of suppliers are now manufacturing in China. Frontline illustrates several examples of this strategy by looking at the stories of Rubbermaid and Thomson Consumer Electronics, the parent company of RCN. Walmart supported China’s entry to the World Trade Organization, and while many saw China’s population as a new market for American goods, the opposite became true and Chinese-made goods were those that entered the U.S. market, many through Walmart. While Walmart employs a significant number of Americans and produces goods U.S. consumers purchase at low prices, many experts are also concerned about just how good Walmart is for America. As manufacturing companies are forced to outsource and offshore, Americans lose their manufacturing jobs, in large part for Walmart’s push for lower labor costs. American’s must then seek alternative employment, sometimes at companies with lower, hourly work. The pursuit of lower labor costs leads to a loss of American-made companies and decent-paying American jobs in the eyes of many experts, for these individuals, Walmart is not good for America.
This history of Walmart’s impact on American and Chinese manufacturing was eye-opening. The narrative of Walmart being both good for consumers and bad for manufacturing companies highlighted the complex ways organizations tell their own stories or are interpreted by others. This article helped me to think about how to highlight the positive and minimize the negative.
LO2: demonstrate the ability to assess complex organizational environments and achieve communication goals.
LO5: critically analyze messages.
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