Wal-Mart is not only the world's largest company it is also the largest company in the history of the world. Notably, it is challenging to compete with Wal-Mart, but Fishman provides incentives that other competitors may apply to counteract Wal-Mart’s competitive strategies.įishman explains a plan that does not focus on the price of necessities to potential competitors, which can be effective in competing with Wal-Mart.Drawing on unprecedented interviews with former Wal-Mart executives and a wealth of staggering data - such as that Americans spend $36 million an hour at Wal-Mart stores - this is an intimate look at a business that is dramatically reshaping the American economy. Fishman indicates that Snapper Lawnmows only reinstated its supply to Wal-Mart after meeting flexibility requirements as well as supplying high-quality products and services (22).Fishman’s book explains the best ways to compete with a mega-corporation such as Wal-Mart. The supplier’s failure to maintain flexibility and meet the demands leads to a poor supplier-retailer relationship, which eventually results in poor profits as well as decreased reinvestment opportunities.įor example, Snapper Lawnmowers took the risk of cutting its links with Wal-Mart that lead to a 20% loss of its business partners. However, it is quite challenging to meet and maintain all the retailer needs and demands, which necessitate a supplier to be flexible at all times to meet Wal-Mart’s ever-increasing good demands. Remarkably, a supply company is obligated to align its goods with the retailers’ demands and needs. Wal-Mart is substantially good at undertaking retail business not only in small quantities but also in bulk.

Additionally, Wal-Mart introduced new pricing strategies that aimed at selling the store’s goods and services at a minimal price, which has been effective in attracting and maintaining customers as well as its competitive position in the market.Fishman discusses the idea of a business venture in chapter five of his book in a sharp retrospective manner detailing the manner in which Wal-Mart relates with its chain of suppliers. Wal-Mart redefined the retail concept through the implementation of under-one-roof shopping hence, customers can purchase goods of all categories at one store.

The Walmart Effect by Charles Fishman