Is Wal-Mart Good for America? (full documentary) | FRONTLINE

Recent questions

• How has Walmart impacted the American economy?

  Walmart has played a significant role in the American economy, offering low prices to consumers but also sparking controversy. While it benefits many Americans with affordable goods, concerns arise regarding job loss and lower living standards. Walmart's success is attributed to cost-cutting measures and providing value to customers, utilizing tools like the Telesign unit and barcode system to track sales and manage inventory efficiently. The company's negotiation tactics with manufacturers have driven down the cost of goods, leading to a shift in production methods and a change in the balance of power in the retail industry from manufacturers to retailers. Overall, Walmart's success represents a shift towards a cost-driven, low-price model in the American economy.

• What is Walmart's pricing strategy?

  Walmart's pricing strategy revolves around the concept of "opening price points," which are rock-bottom prices showcased to attract customers. This strategy is crucial to Walmart's success, luring customers with low-priced items and driving sales. The company's morning meetings at supercenters focus on sales and low prices, emphasizing the importance of offering value to customers. Sam Walton's strategy of eye-catching opening price points was inspired by selling cheap products like ladies' panties in the 1950s, highlighting the company's long-standing commitment to providing affordable goods to consumers.

• How does Walmart influence global trade?

  Walmart's influence on global trade is significant, particularly in its relationship with China. The company is a major importer of Chinese goods, estimated at around $15 billion annually, potentially even higher. Walmart's pressure on suppliers to move production to China for lower costs has been substantial, contributing to America's embrace of trade with China in the late '90s. The US faced a $120 billion trade deficit with China last year, with a conservative estimate suggesting over a million jobs lost to China since the 1990s. While Walmart's support of Chinese TV makers in a trade dispute negatively impacted American manufacturers, it also created new import duties and increased competitiveness in the market.

• What impact has Walmart had on American manufacturing?

  Walmart's impact on American manufacturing has been mixed, with some companies facing closures and job losses due to Chinese competition. Industries like Thompson Consumer Electronics in Circleville, Ohio, and Five Rivers Electronics in Tennessee struggled against Chinese imports, leading to trade complaints and disputes. While Walmart's support of Chinese TV makers in a trade dispute negatively affected American manufacturers, some companies like Five Rivers Electronics were able to win their case against Chinese TV dumping, resulting in new import duties and increased competitiveness. The closure of plants like Thompson in Circleville, Ohio, was attributed to cheaper Chinese imports, highlighting the challenges faced by American manufacturers in a globalized market.

• What are the criticisms of Walmart's business model?

  Walmart's business model has faced criticism for its impact on job losses, lower wages, and a decline in the standard of living in America. While the company offers low prices to consumers, critics argue that it contributes to economic uncertainty and challenges for American workers. Walmart's cost-cutting measures and negotiation tactics with manufacturers have driven down the cost of goods, leading to shifts in production methods and power dynamics in the retail industry. Despite its success in providing affordable goods to consumers, Walmart's business model has sparked debates about its broader implications for the American economy and workforce.