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Unformatted text preview: compete with the low prices. The second force that caught my attention was threats of new entrants into the industry. Wal-Mart is a large company that strives off low prices. They were able to keep their prices unbeatably low by having a strong economy of scale. This makes it so that any company trying to enter the industry and compete with Wal-Mart will have to start off with much higher prices than Wal-Mart. That or take a hit on large loss by trying to keep the prices the same or lower than Wal-Mart. This alone keeps companies from entering Wal-Mart’s industry. The combination of a weak bargaining power of suppliers and a weak threat of new entrants helps Wal-Mart achieve high profits and growth....
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This note was uploaded on 01/18/2012 for the course SHR 247 taught by Professor Cardarelli during the Fall '08 term at Syracuse.
- Fall '08