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In its 2 0 0 4 annual report Heresy Food indicated that Walmart accounted for 2 2 % of its total sales in the year
In its annual report Heresy Food indicated that Walmart accounted for of its total sales in the year Walmart was responsible for of Proctor and Gamble P&G revenues. It is very likely that similar percentages can be found for many of Walmart's leading suppliers. Many of these companies have well staffed offices in Bentonville, Arkansas, where Walmarts corporate headquarters is located. There are specific investments made by these companies to serve one customer, Walmart. Diversification logic that these firms should vertically integrate into retailing forward integration to reduce the possibility of losses due to Walmarts opportunist behavior. Please discuss if it makes sense for firms like Hersey and P&G to vertically integrate into retailing. Use resource and capability logic in your response.
In its annual report Heresy Food indicated that Walmart accounted for of its total sales in the year Walmart was responsible for of Proctor and Gamble P&G revenues. It is very likely that similar percentages can be found for many of Walmart's leading suppliers. Many of these companies have well staffed offices in Bentonville, Arkansas, where Walmarts corporate headquarters is located. There are specific investments made by these companies to serve one customer, Walmart. Diversification logic that these firms should vertically integrate into retailing forward integration to reduce the possibility of losses due to Walmarts opportunist behavior. Please discuss if it makes sense for firms like Hersey and P&G to vertically integrate into retailing. Use resource and capability logic in your response.
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