Does the new business model offer the hope of a sustainable business advantage for Wal-Mart?
We heard that McKinsey was hired to help draft this program, although were not able to get confirmation on that. Without a doubt, though, the consultants and key individuals at Wal-Mart who have decided this course should be pursued believe this to be true. However, the final outcome is uncertain. C. Does this adoption of a new business model create opportunities for competitors? If so, what are those opportunities? We can already see that huge opportunities are being created for competitors. We don’t know what Wal-Mart will gain through the adoption of this new business model, but we clearly can see what Wal-Mart has lost. A supplier community that was once deeply dedicated to seeing Wal-Mart succeed now has ZERO trust in Wal-Mart — at least for right now. The Pundit rarely goes a day now without speaking to a vendor strategically looking to diversify business away from Wal-Mart. That being said, Wal-Mart is still a huge receiver, and its checks can be cashed. Wal-Mart will not go wit