Chapter 4
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The Wal -mart effect PowerPoint PPT Presentation


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Chapter 4. The Wal -mart effect. How much did a one gallon jar of Vlasic pickles cost at Wal-Mart at its lowest price?. $2.97 per gallon. What was Vlasic eventually forced to do after his gallons of pickles were pulled from Wal-Mart’s shelves in January 2001?. File for bankruptcy.

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The Wal -mart effect

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Chapter 4

The Wal-mart effect


How much did a one gallon jar of Vlasic pickles cost at Wal-Mart at its lowest price?


$2.97 per gallon


What was Vlasic eventually forced to do after his gallons of pickles were pulled from Wal-Mart’s shelves in January 2001?


File for bankruptcy


Why was FedEx unable to do any interviews about the “carrier of the year” title they had won?


Wal-Mart ordered them to remain silent on the topic, and they had little choice but to obey.


What remarkable action did John Mariotti make as president of Huffy bicycles to help keep pace with Wal-Mart’s demands?


He gave some of his bicycle designs to his competitors for free.


What happened when Wal-Mart decreased the amount of shelf space for DMC embroidery threads?


DMC’s sales dropped 30%.


What reason, apart from basic frugality, makes Wal-Mart able to keep its own costs down?


Strategic cost shifting to suppliers


In order to continue minimizing costs, what is any company eventually forced to do?


Manufacture products overseas, where there are lower labor costs and less regulations.


Wal-Mart benefits from the impression that _________ is some kind of unmanageable economic weather system out of the control of everyone, affecting all players with indifference.


Globalization


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