To: maui_hawaii
Wal-Mart's return on investment is fine as it is. Plus, higher pricing might defeat Wal-Mart's strategy of undercutting competitors in the first place. Wal-Mart's strategy is to be the low-cost producer which means to simultaneously undercut and defeat and take market share from competitors while generating a perfectly adequate profit for itself. If Wal-Mart's prices were higher, it might not be able to exploit the durable competitive advantage of being the low-cost producer, which is what guarantees that Wal-Mart will stay in business for the long-term.
179 posted on
07/21/2002 1:01:57 AM PDT by
AIG
To: AIG
I will leave it at what I've said already. I need to get some sleep.
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