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Journal of Global Economics

ISSN: 2375-4389

Open Access

Why Manufacturers are Less Powerful than Retailers in Trade Circles? A Case Study of Wal-Mart Retailing Business

Abstract

Shabbir MS

This paper investigates that from last several years, it became a question mark for the literature of academic and trade circles, why manufacturers are less powerful as compared to retailers. Our study provides a fresh fuel in the existing fire over the United States largest retailing corporation. However, our research provides a new dimension through innovative strategies and theories adopted by Wal-Mart and how retailers become more powerful. For this purpose, we take Wal-Mart as a case study in order to investigate several quarries. What are the reasons which make Wal-Mart so successful, unique, mergence and acquisition innovative capabilities? It also highlights the literary work done by historians on Wal-Mart and to examine the progress and different strategies of Wal-Mart in term of its success in retailing business. It is observed that most of expansion of Wal-Mart Inc. was through joint ventures; however in some countries such as Germany and Canada, it was by acquisition. Moreover, Globalization had a positive effect on Wal- Mart’s success and supply chain management system which plays a major role in its business growth and making it a market leader.

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