RSM100Y1 Lecture Notes - Sustainable Development, Sensitivity Analysis
19 Dec 2013
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It"s april fools, businesses are making this as an opportunity. Michael dell is trying to buy back his company. Double edged sword: sustainable growth because wal mart reorders, limits growth because profits are based on volume not margin. Target may buy from you as well because wal-mart is its competitor. More exposure for their products: use wal-mart for marketing. If you ship to wal-mart, you ship it to everyone else. Wal-mart sets standards that are hard for other companies to compete. They have to compete only based on price. Harder for smaller companies to differentiate their products based on anything other than price. If wal-mart ever stops doing business with you, you"re stuck with the large volume of inventory. Assuming exclusivity with wal-mart they are going to be taking a big part of the pie, if stops business, can"t fill it. Price matching it is the consumers" decisions to make the shopping choices.
