The Problem of Monopolization and Wal-Mart


How often do we face the problem of monopolization! This issue has always been a matter of concern for numerous buyers both in the United States and all around the world. This is every common buyer whose wallet is daily affected by the monopolizers who rob people without any qualms of conscience. Sam Walton was a man to oppose this sad practice. His incredible idea was so strong that he managed to create an international company that continues its existence and fulfilling its high-minded mission even after Sam’s death. WAL-MART Company created by Sam Walton is the company that successfully solved the problem of retail prices monopolization in small towns, and greatly improved the situation in numerous cities both around the US and in the other countries of the world.

Problem Identification

The question is how did Sam Walton come to create such a great company which strives to make the daily life of every buyer happier? What was the situation to encourage him for such high-minded resolutions and achievements? How did his innovation affect the lives of people locally and globally (in the country and in the world)?

The situation to change Sam’s life along with millions of other people’s lives occurred in a small town of Newport, Arkansas where people were in need of an honest merchant who would not abuse the situation in a small territory where people have no choice, but to buy whatever they are offered on the reason of monopolization and absence of competition. The situation was actually very sad as even the law was powerless against this collusion. People were simply overburdened by some opportunistic dealer (Badke 2011).

Commenting on the outset of the situation to make Sam accomplish his great achievements, it should be stated that it was really moving to action. Local people along with Sam himself had to spend almost all their funds for the goods of daily use, having no means for the other essential goods and services. This is highly unspeakable as food and drink are really not the only things people need in their lives. Definitely, there was a bad need to do something with the ever-growing resentment among the people. Thus, Sam Walton appeared like sort of a “chosen one” to bring “salvation” to common people.

Of course, when Sam Walton opened the first shop he had an understanding he would face numerous difficulties, and they did not make him wait for them for long. Very soon local people of authority noticed Sam’s success and we’re trying to stop his high-minded initiative. Credited to Sam’s determination and the strength of his character these cruel efforts never stopped him and he created one of the most successful retail companies in the history of humanity which is still rather successful even after so many years to pass, and even after its creator’s death in 1992.

Later on, when Sam faced the other problem his business had the connection with, he as one of the best managers in the whole history of business developed a great strategy that served as the basis for the same strategies in the other countries (Karakowsky 2005). That was the situation that originated with his desire to buy cheaper products for his clients which made him cooperate with suppliers from other countries. When he learned that this lessens the number of American jobs, he created the business plan called “Buy American”. This successful strategy became the other great contribution Sam made to the improvement of the lives of people.


Commenting on the situation, the first important point is the issue’s stakeholders. These are definitely the town inhabitants who suffered greatly from the dishonest merchant’s policy. As to their stakes, it should be stated that the town inhabitants had to face the sad problems of constant money excess expenditure and bad service offered in the local shop. The worsening factor for the problem is the law’s powerlessness against this monopolization collision. Concerning the stakeholders’ challenges, it should be said that their main one was to affect the dishonest dealer in his collision and to make him stop. The threat those people faced on the daily basis was poverty and the lack of financial means needed so badly in the life of every human being. The afflicted ones were trying to cope with the problem; however, their opportunities were rather limited. The law was powerless, monopolization was unconditional.

In such a situation, Sam Walton originated the company WAL-Mart which managed to solve the very important issues. Speaking about the economic responsibilities of WAL-Mart, it should be said that the company helped common people in solving their daily economical problem of buying food and other goods of daily need at rather moderate and advantageous prices. People were also offered numerous working places, thus the economical problem of unemployment was addressed. Even when Walton was criticized by Bill Clinton for cooperating with foreign suppliers and thus eliminating American jobs, Walton responded with his incredible business plan called “Buy American”. The other important problem to be solved is offering better choices at stock for the customers. All the shelves in the stores of WAL-MART have always had the glory of such ones with one of the best choices and quality. Sam Walton also faced the necessity to create his own banking establishments to manage the chain’s money funds. This is another economic responsibility of the company.

The company was also supplied with one’s own transportation department including its own fleet, car park and trains. One of the very important and crucial for humanity on the global scale was creating the phenomenon of discounter shops in general. Very soon this model was inherited and developed by thousands of other retailers around the world (Severs 2005). This has also added to the comfort of life for all the people including the most deprived ones. In addition, the company created by Sam Walton helped in solving such difficult economical and legislative problems as monopolization. With the emergence of WAL-MART monopolists lost their strong position in numerous territories. Solving this problem should be also enumerated as the solving of the legal problem as the law used to be powerless against economical collisions. Taking ethical problems into consideration, the other important achievement is accomplished, Walton. As a man of big heart and great knowledge of what people need for their comfort and happiness in life, Sam Walton was able to develop the greatest standards for customer service within his shops including the “Ten-Foot Rule” which assumed that any shop assistant or other member of the sales area’s staff is obliged to offer one’s assistance and answer any questions by any customer.

The other ethic responsibility exercised by the WAL-MART company is creating an incredible atmosphere with any of the chain’s shops or department stores. Sam Walton believed that people should feel as if they were at home when they entered his shops. He was so concerned about the atmosphere and the quality of service within the chain’s shops that he spent long years traveling to each of his shops, and personally checking the level of service offered to the customers.

As to Sam Walton’s actions’ evaluation as the originator and CEO of the WAL-MART chain, it is evident that he appeared to be very successful and highly qualified. He showed himself as a professional in managing his own business in such a way that it might solve countless economical, philanthropic, legislative and other issues and to do so in the best way possible. It is even rather difficult to offer any other solution for the problem he faced and helped to solve so successfully.


In the case of economical monopolization which Sam Walton faced no other solution of such effects could be offered. This man was able to succeed to create a new model of retail sales both effective for the business owners and for the customers. The most amazing about this model is the fact that its creation was actually inspired by the care about the customers whereas the majority of business people are governed by their own interests of profits. However, Sam Walton himself was the man to face the sad problem of unreasonably high prices in the small town he lived in, and having no other choice he decided to act in a very unusual way.

Each day when I am happy to visit my local discounter I now remember Sam Walton, and I am very contented with what he was able to create. My only recommendation for the WAL-MART company is not to stop in its development and to continue the great mission of its originator. Of course, there are still a lot of things to be improved both in economical, legislative and other areas. In his due time, Sam Walton actually acted in the best way possible to my mind. And I definitely agree with his words when he said that he would act just the same if he was offered a chance to live his life again (Badke 2011). Such people as this courageous and industrious person make the world a better place to live. This great person along with such incredible personalities as Steve Jobs, Walt Disney and others will always stay in people’s hearts and will pose their traces in the history of humanity.


Reflecting on the facts that have been mentioned so far it should be stated that Sam Walton will always stay in the annals of history as the one to offer humanity a chance for a better life. WAL-MART chain created by Sam Walton is the company that successfully solved the very serious problem of retail prices monopolization in small areas, and greatly influenced the improvement of the situation in numerous cities around the world. Walton became a pioneer to offer the strategies and solutions having no prior occurrences. His ideas and unusual solutions created some of the best inventions during the twenty-first century which is the concept of discounter shops and retailer chains including banking, transportation, storage and other establishments. These crucially important establishments are definitely created for improving the lives of millions of common people.


Badke, W. (2011). Research Strategies: Finding Your Way through the Information Fog. United States: iUniverse.

Karakowsky, L., Carroll, A.B. & Buchholtz, A.D. (2005). Business and Society: Ethics and Stakeholder Management – First Canadian Edition. Thomson-Nelson:Toronto, Ont.

Severs, L. (2005). Wal-Mart Makes History in Dinosaur Country. Business Edge. Web.

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