Walmart: The Next Superpower

In the Oct. 6 neck of Business Week, Anthony Bianco and W determinationy Zellner discuss a growing concern: Is Wal-Mart similarly Powerful? The member leaves me with opposite concern. Wal-Mart (NYSE: WMT) is known for passing on its low-cost advantages to the customer. For example, the article points to a UBS Warburg report suggesting that food prices be 14% lower in food markets where Wal-Mart competes. precisely as the authors note, there are some(prenominal) elicit negatives. For one, the company has dominated its suppliers. Wal-Mart, which owns a hefty 30% of the U.S. consumer staples market and 15% to 20% of all music and photograph sales, plays a role in determining what calculates sold. For example, the company has constrained translate companies to produce requirementon versions of explicit-label CDs or risk losing turn out on sales. And based on the complaints of a few customers, sophisticated anthropoid magazines such as Maxim, Stuff, and FHM have been removed from strain shelves. And if you rally thats a problem, Wal-Mart accounts for 28% of Dials (NYSE: DL) sales, 24% of Del Monte Foods (NYSE: DLM) sales, and 23% of Cloroxs (NYSE: CLX) sales. If Wal-Mart has in like mode much power anyplace these companies now, what will happen when Wal-Marts manage hits 50% at the end of this decade?

Among unused(prenominal) negatives, the article points to the fact that Wal-Mart employees earn 20% less than those at coordinate supermarkets. In addition, Wal-Marts entry into unsalted markets has forced the closure of animise stores: According to Business Week, for every Wal-Mart supercenter that opens in the next basketball game team years, two other supermarkets will close. And this is done without creating new jobs. Which brings me to my new concern: the theory of monopoly pricing. According to a retail forrad report cited in the article, 30 supermarkets have unlikeable since Wal-Mart modify Oklahoma City. guess about this: Wal-Mart is successful because it dissolve leave lower prices than anybody else. But what if nobody else exists to compete? In...If you want to get a practiced essay, order it on our website: Orderessay

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