Donald Tiffany
Retail Marketing
Mid Term alternate assignment
CASE 3 Wal-Mart’s Sustainability 360

1. Is Wal-Mart good for society? Would society be better off with or without Wal-Mart?
The debate on whether Wal-Mart has done more good or bad for society has been a longstanding one. Apologists of the world’s largest retailer defend its business strategies, touting it as the prime example of unfettered American capitalism, the epitome of free market efficiency with low costs and high quantities of production and consumption. Opponents argue that the retail behemoth has led to the transfer of millions of jobs to less-developed countries like China, the exit of many small-to-medium businesses, and also infringement of employee rights. There are two sides to this debate depending on the stance one takes, along with how “society” is defined. From an economic standpoint, society refers to, collectively, the common person; the consumer. Consumers would benefit from low prices and an increase in quantity of goods consumed. Wal-Mart’s strategy of “everyday low prices” has certainly served society well in that respect.
Due to its enormous economies of scale, notably its bargaining power with suppliers and the establishment of its own distribution centers, Wal-Mart has managed to offer very competitive low prices to its consumers due to the low costs. This has resulted of millions of Americans – especially the low-to-medium income consumers it traditionally targets – being able to stretch their disposable income and lead a better quality of life, a testament to its “Saving money and improving lives” stance. Wal-Mart has only resulted in immense job creation for millions of Americans; this is beneficial for those in depressed cities and towns who would otherwise not have jobs. In the laissez-faire environment, Wal-Mart represents good resource allocation. Most