WALMART Case Study Can a company be too

WAL-MART Case Study: Can a company be too successful? http: //www. pbs. org/itvs/storewars/stores 2. html http: //www. pbs. org/itvs/storewars/sitemap. html

Research Article Findings on Market Power Wal-Mart Supercenter: (size of 3 Football Fields)

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2011 3, 600 Stores In USA Total Revenue: 1995 = 100 billion 2003 = 245 billion 2011 = 450 billion

ANGRY Communities Fight Back Wal-Mart Supercenter: (size of 3 Football Fields) Zoning Analysis

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

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

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Benefits Is Wal-Mart good for the U. S. economy? Costs

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 Products PRODUCERS Circular Flow Land, Labor & Capital Factors CONSUMERS

Should Wal-Mart be regulated?