Subject category:
Economics, Politics and Business Environment
Published by:
Stanford Business School
Version: 15 May 2006
Length: 16 pages
Data source: Published sources
Abstract
In 2002, when Wal-Mart became the largest US company in sales, it began to attract considerable attention. Its expansion into the grocery business seemed to ignite a firestorm of contention and bad press. Wal-Mart was criticized for providing low wages and inadequate health care benefits, driving small merchants out of business, damaging the culture in small towns, harming the environment, and violating workers rights. The company realized that its practice of focusing solely on customers and employees was no longer sufficient, it needed a non-market strategy to address the criticism and repair its deteriorating reputation. This case explores the opposition that organized around Wal-Mart''s practices and the issues raised. It sets the stage for developing and analyzing a successful non-market strategy for Wal-Mart.
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Abstract
In 2002, when Wal-Mart became the largest US company in sales, it began to attract considerable attention. Its expansion into the grocery business seemed to ignite a firestorm of contention and bad press. Wal-Mart was criticized for providing low wages and inadequate health care benefits, driving small merchants out of business, damaging the culture in small towns, harming the environment, and violating workers rights. The company realized that its practice of focusing solely on customers and employees was no longer sufficient, it needed a non-market strategy to address the criticism and repair its deteriorating reputation. This case explores the opposition that organized around Wal-Mart''s practices and the issues raised. It sets the stage for developing and analyzing a successful non-market strategy for Wal-Mart.
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