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Wal-Mart’s Growth and Expansion Research Paper

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Updated: Aug 5th, 2021


Wal-Mart is regarded as one of the great companies in the US. The company has also spread to other parts of the world. The company specializes in the retail industry where it has stores across the United States. Wal-Mart was started in the year 1915. The company has grown to become one of the biggest multinational companies in the world.

Notably, the company has expanded its subsidiaries all over the US. People have viewed the growth and expansion of Wal-Mart differently. Proponents have seen this as being of great benefit to the American people while others have seen it as a move that has brought numerous disadvantages to the Americans (Freeman 38).

Those who do not see the benefit associated with the growth of Wal-Mart note that the move has done little to support the economy. It has been noted that the expansion of Wal-mart has led to the destruction of many job opportunities than it has created. In addition, Wal-Mart employees do not have health coverage or are inadequately covered by the company.

It has also been noted that the company has contributed to environmental degradation in a huge way. Although the company is argued to have created massive employment opportunities through its stores spread across the US, it can be noted that many jobs have lost since small businesses have been forced to close shop in areas where the Wal-Mart is established.

The company has been praised for its convenience and offer of a wide range of products, and this makes it difficult for small businesses to compete with it. In addition, the suppliers of the retail company are from overseas, and this does not help the growth of local production. This leads to loss of employment from the local manufacturers.

The company also does not pay its staff competitively. This is worsened by the fact that the employees are subjected to tough working conditions. In addition, it was established that the company had a negative impact on the family poverty rates. This was drawn from a study that was conducted on in counties where Wal-Mart stores. The study was done between the years 1987 and 1998 (Goetz & Swaminathan, 212-214).

Apart from those opposed to the company growth and its effects, there are those who argue that Wal-Mart growth has had positive effects on the Americans. Indeed, the company has been promoting energy saving measures. This is exhibited in the use of energy-saving bulbs, which are also prominently displayed on the shelves.

This way, the company is set to influence people into adopting eco-friendly energy use. Furthermore, the company sales cheaper drugs that are affordable to most people with low income. In a research that was done, it was noted that the earnings per job reduced in areas where the company had established its retail stores (Fitzgerald, 1-3).


The growth of Wal-Mart as the world leading retail store has come with various effects on the people. It can be noted that Wal-Mart has affected the American people in great ways. Although its low pricing strategy has been hailed as a positive element, there are other negative elements associated with the company.

For instance, the employees of the company are let to work under unfavorable conditions (Freeman 38). Thus, Wal-Mart has created both negative and positive aspects to people in areas where the company has established its stores. There is a need to critically analyze the effects that this multinational company has had on the people in the United States.

Works Cited

Fitzgerald, Terry J. & Ronald A. Wirtz. “The Wal-Mart effect: Poison or antidote for local communities?” Fedgazette, 20.1 (2008): 1-5.

Freeman, Edward, E. “The Wal-Mart Effect and Business, Ethics, and Society.” Academy of Management Perspectives, 20.3 (2006): 38-40.

Goetz, Stephan J. & Hema, Swaminathan. “Wal-Mart and County-Wide Poverty.” Social Science Quarterly, 87.2 (2006): 211–226.

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