ECO5/6

Part 1 (1 Page)
Instructions
The balance of power in an industry can dramatically shift from buyers to suppliers. Companies that have gotten into a weak position with suppliers need to strategically redefine the relationship, tackling the problem as an enterprise-wide challenge.

For this discussion, read the given articles:
Bargaining Power of Buyers | Porter’s Five Forces Model
How to Negotiate with Powerful Suppliers
Reference
Martin. (2014, August 24). CLEVERISM. Bargaining Power of Buyers | Porter’s Five Forces Model. Retrieved from https://www.cleverism.com/bargaining-power-of-buyers-porters-five-forces-model/
Paranikas, P., Whiteford, G. P., Tevelson, B., & Belz, D. (2015). How to Negotiate with Powerful Suppliers. Harvard Business Review, (July-August). Retrieved from https://hbr.org/2015/07/how-to-negotiate-with-powerful-suppliers
Respond to these questions:
How does Walmart’s power as a buyer affect the industry?
What are some industries that struggle with powerful suppliers and what are some industries that struggle with powerful buyers?
What are the approaches for dealing with the challenges suggested in the articles?

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Part 2 (1Page)
Instructions
Please watch the video on Wal-Mart’s business strategy and discuss your thoughts about its impact on America.

Respond to these questions:
Which key innovations have given Wal-Mart its market power? Does Wal-Mart affect communities and workers of the global markets in the same way?
How is Wal-Mart’s growth strategy linked to poverty? How do state and local governments subsidize Wal-Mart and other low-wage employers?
Why do some communities oppose the building of Wal-Mart stores in their community?
Does their strategy seem to exhibit CSR?
Reference
Smith, H., & Young, R. (Producers). (2004, November 16). Is Wal-Mart good for America? [Television broadcast] [55 min 09 sec]. Arlington, VA: Public Broadcasting Service (PBS). Retrieved from http://www.pbs.org/wgbh/frontline/film/showswalmart/

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