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Case Example: Wal Mart

The image is a scale with Claim on the left side which is lighter and Efficiencies on the right which is heavier.

Claim: Wal Mart was pressuring its suppliers to charge higher prices to its competitors, under threat of suspending purchases of their products

Efficiencies: Wal Mart argued that lower prices from suppliers resulted from cost reductions in its distribution systems:

  • Better inventory management
  • Shorter average payment period

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Efficiencies translated into lower prices for consumers

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Updated June 25, 2015

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