Impact of Wal-Mart on Retail Consolidation and Standardization
Introduction
The news is finally out. Bill Gates is no longer the richest person on the planet. In 2001, his fortune declined to $ 54 billion from $ 76.5 billion in 2000. The person who’s upstaged the Microsoft founder with a personal fortune of $ 65.4 billion is Sam Robson Walton, the head of Wal-Mart. Wal-Mart is presently the largest company in the world with a turnover of $ 219 billion, ahead of Exxon Mobil ($ 191 billion) and General Motors ($ 177 billion). Wal-Mart since inception has been an irresistible force in the retail industry. Its focus on supply chain efficiency has ensured that it can offer EDLP (Every Day Low Price) to its customers while the sheer volume of its purchases lets it negotiate very favorable terms from its suppliers. Supermarket chains are one of the retail segments that have been hit directly by the WalMart phenomena. Supermarkets operate in an environment of very slim profit margins......
Join Now or Login to view the rest of this paper.
Approximate Word Count: 2422
Approximate Pages: 10 (260 words per double-spaced page) |