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WAL-MART. Case Study: Can a company be too successful ?. http://www.pbs.org/itvs/storewars/stores2.html http://www.pbs.org/itvs/storewars/sitemap.html. Research Article Findings on Market Power. Wal-Mart Supercenter : (size of 3 Football Fields). Video #1. 2011 3,600 Stores In USA.
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WAL-MART Case Study:Can a company be too successful? http://www.pbs.org/itvs/storewars/stores2.html http://www.pbs.org/itvs/storewars/sitemap.html
Research Article Findings on Market Power Wal-MartSupercenter: (size of 3 Football Fields)
2011 3,600 Stores In USA Total Revenue: 1995 = 100 billion 2003 = 245 billion 2011 = 450 billion
ANGRY Communities Fight Back Wal-MartSupercenter: (size of 3 Football Fields) Zoning Analysis
Predatory Pricing • Predatory Pricingis purposely setting your prices very low in order to put other firms out of business • Your intent is to raise prices later • Illegal by Anti-Trust Laws
2011 450 billion
2011 3,600 Stores In USA Total Revenue: 1995 = 100 billion 2003 = 245 billion 2011 = 450 billion
Reasons to HATE Wal-Mart Keeps wages low Puts local companies out of business Accused of “abusing” worker rights Push suppliers too hard? Predatory Pricing?
How is Wal-Mart so efficient? What is Economies of Scale? More efficient firms => have lower costs => can offer lower prices => other can’t compete
Benefits Costs Is Wal-Mart good for the U.S. economy?
Products CONSUMERS Circular Flow PRODUCERS Land, Labor & Capital Factors Reasons to LOVE Wal-Mart Keeps prices very low Saved consumer 20 billion a year Overall, may save 100 billion per year This Lowers inflation and↑ GDP