Walmart and Small Businesses in Canada Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

The expansion of Walmart has often been regarded as a negative factor that adversely affects many communities, especially entrepreneurs working in these areas. This paper is aimed at discussing the effects that this organization produces on small businesses in Canada.

On the whole, it is possible to say that this competition poses difficulties for these firms, and very often, these firms go out of business. However, one should take into consideration this rivalry also forces businesses to improve their operations and this is one of the reasons why they retain their positions in the market.

First, it should be taken into account that this company has one of the most developed supply chains among many retailers, and it is important for this retailer because it helps them set lower prices for a wide range of products. It is possible to provide several examples illustrating the influence of Walmart. First of all, one can say that the products sold by this corporation are lower by approximately 30 percent.

Moreover, one should take into consideration that Walmart stores have a wider selection of goods, and this attribute appeals to many clients. Therefore, it is possible to say that many customers choose to purchase products from this retailer. As a rule, about 50 percent of small businesses in local areas are likely to be closed within a relatively short period. This is one of the trends that can be identified.

Apart from that, the suppliers of these firms choose to work with Walmart because this corporation can purchase a larger quantity of goods. So, these cases suggest that this corporation harms small businesses. This is one of the main points that should be kept in mind.

Nevertheless, one should not suppose that Walmart only harms other firms since such an assumption would be rather inaccurate. In some cases, the competition with this corporation leads to the improvement in the performance of small businesses. In particular, these firms have to improve many aspects of their operations in order to improve their cost-efficiency.

For example, they adopt new software solutions that can improve their supply chain. It should be taken into account that many small businesses have very obsolete inventory systems, and this is one of the reasons why they cannot compete effectively with such companies as Walmart. Therefore, these firms adopt more advanced information systems in order to remain in the market.

Furthermore, the presence of this corporation prompts many businesses to find new sources of competitive advantage in order to remain sustainable. This is why they focus on the improvement of their services. In this way, they can better retain clients and differentiate themselves among other firms.

This is one of reasons why firms remain competitive, even despite the impact of Walmart. In many cases, people choose to purchase goods at these stores because they have better services. This is one of the main arguments that can be made.

These examples indicate Walmart produces complex effects on many firms operating in Canada. It has to be admitted that the presence of such a competitor presents significant challenges to small businesses. Many of these businesses go bankrupt. Nevertheless, these firms are also prompted to improve their work in effort to retain clients. So, Walmart intensified competition in Canada.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2020, March 12). Walmart and Small Businesses in Canada. https://ivypanda.com/essays/walmart-and-small-businesses-in-canada/

Work Cited

"Walmart and Small Businesses in Canada." IvyPanda, 12 Mar. 2020, ivypanda.com/essays/walmart-and-small-businesses-in-canada/.

References

IvyPanda. (2020) 'Walmart and Small Businesses in Canada'. 12 March.

References

IvyPanda. 2020. "Walmart and Small Businesses in Canada." March 12, 2020. https://ivypanda.com/essays/walmart-and-small-businesses-in-canada/.

1. IvyPanda. "Walmart and Small Businesses in Canada." March 12, 2020. https://ivypanda.com/essays/walmart-and-small-businesses-in-canada/.


Bibliography


IvyPanda. "Walmart and Small Businesses in Canada." March 12, 2020. https://ivypanda.com/essays/walmart-and-small-businesses-in-canada/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1