Wednesday, April 25, 2007

Walmart's Middle Age crisis

Walmart is famous for its rapid expansion rate. Not long ago, Walmart stores are opened at the rate of one store a day nationwide. And today, sale volume has been very slowly increased barely 1%. What is the real cause for Walmart's slowing growth rate? It is more a substance problem or the bad reputation it gets from giving low wages and benefits to its employees. I think both. Speaking from my own experience, I can see Walmart employees near my residence are not very ethusastic about their jobs. Some of them are not very helpful, some of them are not very friendly. Think about it, in retail business, customer service is very important. When Walmart employees are not compensated right, then they are going to lash out on their customers. Ultimately, Walmart is the victim at the end. Public relations are important for any business. Customers to a business is like water to a boart. Water can float a boat or sink it. On the other aspect, Walmart's failure in boosting sales has to do market saturation. A pond can only hold so many fish. If the numbers of fish exceeds the pond's capacity, fish will die. Walmart has been expanding nonstop for the recent years. Many Walmart stores are competing with itself. Over expanding will only have damageing effects on the company. Along with bad reputation, Walmart will ultimately go into collapsed.

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