An article in the New York Times yesterday takes a look at the world of Wal-Mart, and its growing presence in India. Wal-Mart is trying to infiltrate emerging markets to sustain its global growth and attract a new client base.
While some argue Wal-Mart’s presence in developing regions will stimulate growth and development, others are wary knowing all too well the price wars Wal-Mart ignites between suppliers to achieve the lowest cost. This dichotomous reputation is certainly puzzling, where on the one hand Wal-Mart is seen as supporting the working man’s budget while facilitating the progress of developing countries; and on the other, it is a destroyer of small business and exploiter of cheap labor abroad.
In India, the corporate giant is supplying farmers with low-cost household items to encourage agricultural innovations and tackling infrastructure problems by transporting all goods received from farmers. The farmers are happy because they get paid on time, and Wal-Mart is enjoying the spoils of tapping this saturated consumer market.
At home, the one-stop shop is criticized for putting factories out of business and severely underpaying workers. Yet, people still can’t resist the price tag appeal at “wally-world”, particularly during this economic storm. The PR nightmare, or rather conundrum, has been analyzed time and time again, is Wal-Mart good or bad? With 2009 revenue totaling $405 billion, larger than the economies of nearly 150 countries, the company acts more like an international hegemony than a multi-national corporation. The Roman Empire was both adored and despised during its global conquest, but its influence is indisputable.
Whether you boycott or buy in bulk, Wal-Mart is representative of the global clout corporations can have. Of course such organizations must respond to consumer criticism, but it’s unlikely complaints and accusations will move this goliath to change its ways. But what is certain is the role Wal-Mart and its counterparts play in shaping the global economy.
-Amelia
