WAL-MART

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WAL-MART

• Case Study Can a company be too successful?

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Research Article Findings on Market Power
Wal-Mart Supercenter (size of 3
Football Fields)
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Video 1
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2011 3,600 Stores In USA
Total Revenue 1995 100 billion 2003 245
billion 2011 450 billion
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ANGRY Communities Fight Back
Wal-Mart Supercenter (size of 3
Football Fields)
Zoning Analysis
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Predatory Pricing

• Predatory Pricing is 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

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2011 450 billion
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2011 3,600 Stores In USA
Total Revenue 1995 100 billion 2003 245
billion 2011 450 billion
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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?
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How is Wal-Mart so efficient?
What is Economies of Scale?
More efficient firms gt have lower costs gt
can offer lower prices gt other cant compete
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Video 2
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Benefits
Costs
Is Wal-Mart good for the U.S. economy?
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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
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Should Wal-Mart be regulated?