Is Walmart ethical?

[Autumnleaf]

While I agree with you about the latter part, Jacks point is not saying this is not true but asking us to site evidence for our claims (A very reasonable request IMO)

I will try to find my citations myself but I can make no promises - It has been a while since I looked into this issue and did not keep tabs on what I found.

Studies reveal dual pricing strategies - comparison of Wal-Mart Stores Inc. prices with other discount stores in six U.S. cities - Wal-Mart | Discount Store News | Find Articles at BNET

Wal-Mart's Price Strategy - CheatHouse.com

"Every store manager has authority to lower prices if he sees the store across the street selling for less. If you have to lower the price, you lower it."

 

[PreachersWife2004]

Studies reveal dual pricing strategies - comparison of Wal-Mart Stores Inc. prices with other discount stores in six U.S. cities - Wal-Mart | Discount Store News | Find Articles at BNET

Wal-Mart's Price Strategy - CheatHouse.com

"Every store manager has authority to lower prices if he sees the store across the street selling for less. If you have to lower the price, you lower it."

Those are different ballgames though. First article simply shows that Walmart is more likely to lower its prices around competitors than when it is standing alone. Nothing controversial about that.

Second link is to an essay that you have to be a member to read and isn't really what I would consider proof that walmart lowers its prices and then raises them again once the competition is gone.

Not to mention the second link is for students to "find" essays to use for school. Hence the name cheathouse. Not an ethical or reliable source as far as I'm concerned.

 

[Autumnleaf]

Those are different ballgames though. First article simply shows that Walmart is more likely to lower its prices around competitors than when it is standing alone. Nothing controversial about that.

Second link is to an essay that you have to be a member to read and isn't really what I would consider proof that walmart lowers its prices and then raises them again once the competition is gone.

Not to mention the second link is for students to "find" essays to use for school. Hence the name cheathouse. Not an ethical or reliable source as far as I'm concerned.

If Walmart lowers its prices around competitors more than if it stands alone, what do you think happens if those competitors go out of business?

 

[PreachersWife2004]

If Walmart lowers its prices around competitors more than if it stands alone, what do you think happens if those competitors go out of business?

but they're not going out of business, for the most part.

And if they do, why is it so bad for Walmart to then raise their prices? Unless you're able to definitively correlate that a business went down solely because of walmart, there's nothing unethical about what Walmart is doing.

Should I feel bad because I manage to sell more Avon than the other ladies in my area because I don't markup as much and I give discounts, especially on first or second sales?

 

[Autumnleaf]

but they're not going out of business, for the most part.

And if they do, why is it so bad for Walmart to then raise their prices? Unless you're able to definitively correlate that a business went down solely because of walmart, there's nothing unethical about what Walmart is doing.

Should I feel bad because I manage to sell more Avon than the other ladies in my area because I don't markup as much and I give discounts, especially on first or second sales?

They are going out of business for the most part. At least in small towns, there is direct correlation. That is the premise behind the question if Walmart is ethical in its business practices. Keep in mind I shop at Walmart all the time so its not like I'm a hater of Walmart by any means. I just recognize they seem to be a monopolistic discount retailer who use an unfair advantage to improve their market share. They basically strong arm suppliers to provide goods to them at lower 'cost' prices than competitors because Walmart buys such huge volumes. This causes a pressure among competing suppliers to Walmart to lower their production costs so they can undercut each other to get Walmart's business.

Walmart works on several levels to do what it does which is good for people because it offers low prices, but by the same tolken it is bad because it leads to jobs being sent overseas for cheap labor to build stuff Walmart sells.