What circumstances are bullying supplier or customer

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Reference no: EM132083944

The buyer-seller dynamic at the industrial level is invisible to consumers; so for this Discussion, we’ll dip into recent history. Walmart (WM) is infamous for squeezing every penny out of their suppliers. They think doing so is essential if they’re going to give their customers “Everyday low prices,” and allow them to “Save money, live better,” while still making money. One of WM’s suppliers was an iconic 66-year-old American firm named Rubbermaid. In 1999, WM refused to accede to their request for a small price increase, and Rubbermaid was forced into bankruptcy. Enter the phrase “Walmart vs. Rubbermaid” into your browser app, and inform yourself about the affair. Then consider this. It seems that there are still situations in which supplier-customer cooperation is not needed to ensure the supplier’s survival and growth. After all, WM is still around, and richer than ever. What characterizes such situations? In other words, under what circumstances are “bullying” a supplier, or a customer, a sound business strategy? Or does it only seem to be a sound strategy? Explain.

Reference no: EM132083944

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