The Dilemma Facing Walmart

Many companies today are facing challenges and Walmart is no different. Walmart prides itself on being famous for the everyday low-price leader. Are they maintaining the lead on this or are other stores challenging the everyday low price? Another issue that stays forefront for Walmart is they have become known as the "Giant Bully" of the neighborhood. Now the company is trying to move in on the transportation side by owning and maintaining its own fleet of trucks.

According to our case study Real Choices at Walmart states that in the past Walmart has requested concessions from its suppliers such as environmentally friendly packaging, cooperative advertising, and radio frequency tags on their products (Solomon, Marshall, & Stuart, 2009). Walmart like the bully they have become is making more and more demands on its suppliers. Walmart is passing its cost on to the suppliers to be able to maintain the everyday low price image. How far can Walmart go with this practice and is there an end for this type of practice?

The dilemma that is facing Walmart is does it continue to do business in the same manner or does it try to manage relationships with its business partners? How can they effectively maintain the everyday low price and maintain their costs. Real Choices at Walmart makes not that "For many suppliers, though the only thing worse than doing business with Walmart may be not doing business with Walmart" (Solomon, Marshall, & Stuart, 2009).

Reference:

Solomon, M. R., Marshall, G. W., & Stuart, E. W., 2009, Sharpen the Focus: Target Marketing Strategies and Customer Relationship Management, Marketing 7E Real People Real Choices,