Wal-Mart is the Low-Price Leader Research Paper - 1

Wal-Mart is the Low-Price Leader - Research Paper Example According to the Bureau of Labor Statistics (2011), the average unemployment rate across the United States remained steady for February and March 2011 at an estimated 8.8%. Thus, while working for a company like Wal-Mart may not be ideal, it may be one of the few forms of employment that many Americans are able to secure under the current economic circumstances facing the country today (Glasmeier, 2006). Unfortunately, the retailer is taking obvious advantage of the desperation of customers and employees. In remaining a major force in the retail industry, gaining power through the economic crisis on multiple levels, the actual costs behind its low prices are definitely not a part of the organization’s publicized marketing strategy (MSNBC, 2005). However, there has been a great deal of research presenting information suggesting the low prices come at very high costs, not only to the employees but by extension the customers, through poor customer service and an overall negative shopping experience (Glasmeier, 2006). Unless changes are made to the way employees are treated, and protections are allowed—even if they do not come in the form of unions—these employees will only continue to grow more and more disgruntled to the point where customers are turned off by the overall experience and even those who may not be able to afford it, will go elsewhere. These customers do not need to be made to feel bad about their shopping experience, Wal-Mart has an opportunity that they are failing to realize. At this point, they have a massive market share, which will most likely return to what it was prior to the 2008 economic collapse, in the next couple of years when the economy bounces back from its brief devastation; based on historical data (Microsoft, 2011). However, without implementing a training program that drives customer loyalty through employee satisfaction, Wal-Mart has the potential to lose their significant gain, to competitors like Target, when unemployment rates are down and the economy is booming once again (Microsoft, 2011).