*The Commerce Journal>>>Corporations

What is the economy model of walmart?

Simple

Get the most desired products, negotiate the lowest cost for them, and sell at a small markup. Buy direct from the manufacturer, thus saving more money, and put the squeeze on them later.

Walmart tells manufacturers they'll buy it for say $1 / unit, when the manufacturers cost is now .50/unit. After awhile walmart will say k, we wanna buy it at .80/unit. Which the manufacturer will lose .20/unit profit, and won't like at all, but Walmart will then threaten not to purchase anymore, and since the manufacturer has devoted all of its resources into walmart production, it doesn't have any oher customers to sell its goods to.

If the manufacturer says no, they may go out of business
if the manufacturer agrees, eventually they may go out of business because their sale price will match their cost

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