You refer to this as the "Walmart" strategy, but I don't think that's a standard interpretation of Walmart's strategy. From what I can tell, Walmart is more focussed on the long term, contracting with supplies in ways that allow them to keep prices low enough to prevent competitors from ever entering the market. Can you find any examples of Walmart actually following the strategy you suggest?
It's generally understood that "back in the day" (whenever that was) when Walmart was going through it's greatest period of expansion that Walmart would be able to enter an area and have a negative effect on existing businesses that didn't have it's advantages (massive corporate bankroll, improved supply chain, variety of offerings, etc). Eventually those business would atrophy, often closing. At this point, the local store had established itself and was able to behave in whatever manner it wanted (raise prices, lower wages, etc) because they had essentially become the only game in town.
At this point, as they are so entrenched, they probably behave in a very different way and have different needs.
Comments
You refer to this as the "Walmart" strategy, but I don't think that's a standard interpretation of Walmart's strategy. From what I can tell, Walmart is more focussed on the long term, contracting with supplies in ways that allow them to keep prices low enough to prevent competitors from ever entering the market. Can you find any examples of Walmart actually following the strategy you suggest?
https://www.investopedia.com/terms/w/walmart-effect.asp
It's generally understood that "back in the day" (whenever that was) when Walmart was going through it's greatest period of expansion that Walmart would be able to enter an area and have a negative effect on existing businesses that didn't have it's advantages (massive corporate bankroll, improved supply chain, variety of offerings, etc). Eventually those business would atrophy, often closing. At this point, the local store had established itself and was able to behave in whatever manner it wanted (raise prices, lower wages, etc) because they had essentially become the only game in town.
At this point, as they are so entrenched, they probably behave in a very different way and have different needs.