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Wal Mart Is Changing The Push System

698 words - 3 pages

Wal-Mart has been an organization that has been around since 1962. This organization did not start off as nationwide foundation but started in small communities. For the goal of Wal-Mart, these stores want to provide as many products to their consumers as possible at small prices. There are more than 100,000 products currently at Wal-Mart which means they have an abundant supply of items for every consumer. Since these stores are not targeted at wealthy individuals, consumers want their products to be as cheap as possible for brand name items. Most companies start off using a “push system” with their manufactures which meant that manufacturers would decide what they were going to make and ...view middle of the document...

Retailers have not been the only ones being affected by Wal-Mart but manufacturers are also getting the bad hand. For manufacturers, they are forced to move their production companies overseas to areas like China. This means that manufacturers can have cheap labor and be able to sell their products to Wal-Mart for much cheaper. Even though most products say they are “American Brant”, they are actually being made by American companies in foreign countries like China. 80% of suppliers for Wal-Mart have their products made in China alone. If companies want to be able to compete with Wal-Mart, they must have their products be made overseas so payment for products costs less and so does labor. During Wal-Mart’s recent change companies, unemployment is beginning to increase. The reason for the unemployment is because almost all manufacturers are putting their companies in foreign countries because they do not want to pay higher wages; more than one million jobs have been lost to China alone. Even with some manufacturers...

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