Wal Mart : Company Level Analysis

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V. Company Level Analysis Two companies that are involved at the forefront of this issue today are Costco and Wal-Mart, and although they are both similar in the sense that they sell low price merchandise, they both have different yet interesting approaches and perspectives of dealing with this social issue. On one hand we have our focal company, Costco, who pays $17 an hour on average to its workers, whereas Wal-Mart pays its full time employees around $10.11 an hour on average (Cascio, 2006). The difference in the wages paid by these two competitors is extremely significant, considering that Costco pays its employees around 70% higher than what Wal-Mart pays its employees for similar work. In order to assess the reasoning between each…show more content…
Around 60% of Wal-Mart’s overall net sales come from the Wal-Mart super center stores in U.S., while 25% come from Wal-Mart International Stores, and 10-12% come from Sam’s Club Stores (IBIS World, 2013). As of 2013, the leading retailers in the United States were Wal-Mart (340.46 billion dollars in sales), Kroger followed in second with 97.6 billion dollars in sales, Costco in third with 77.3 billion dollars in sales, and Target in forth with 73.65 billion dollars in sales (Statista, 2014). Other than Wal-Mart, in terms of retail products, Costco 's main competitors include stores such as Kroger, Target, Bed-Bath and Beyond, and Best Buy. Its online competitors include Amazon and eBay, while its pharmacies compete primarily with Walgreens, CVS, and Rite-Aid. ((KARTHIK SOURCE)) Thus, we can see from a market competitive standpoint, both companies are very similar and have achieved similar success in terms of warehouse distribution. These statistics illustrate how Costco and Wal-Mart have the potential to make an impact that reaches further than their own profits and losses- with such large market presence these two companies have the potential to influence the payment structure of similar companies and thus indirectly impact the social issue of living wage on a larger scale. These competitors also have the potential to impact Costco and Wal-Mart, however. There has been increasing

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