Friday, May 23, 2008

video on The Economics of Walmart

http://www.youtube.com/watch?v=yRLH9utwb3wv

Wal mart is successful mainly because of its low price and orders of sale remain large. Wal mart is trying to lower production cost by providing their employees with little benefits, eg,health care with many workers are paided at minium wage. Compare to other companies with comparatively size, Wal-Mart has a more flexible business model that is able to adapt to market conditions quickly.

However, early this year, number of consumers of Wal-mart drops as quality of products sold in Wal-mart is questioned. The change in consumer's atitude as they would rather buy products somewhere else, which may be a little bit more expensive, but the quality is much better.

Xinyi

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