Walmart stores are not only known for their enormous size and their vast selection but also for extremely low prices for most of the products. For a long time, Walrnart offered low wages to the employees. However, in the last two years Walmart has increased the wages of the employees significantly. Walmart now provides better training and promotion opportunities within the organization. The critical question here is how Walmart has been able to keep its prices low, despite offering better compensation to the employees. Answer to this question lies in increased online competition, lack of competition in some geographical areas, which gives access to large consumer pool, low operational costs, direct sourcing, large volumes and the bargaining power of Walmart over the suppliers . Buyers' bargaining power affect the competitive environment for the seller, for the industry as a whole and influences the seller's ability to achieve profits. Power buyers (such as Walmart) can pressurize sellers to reduce the prices, enhance the product quality, and provide better services. Most of these things are an added cost to the seller. Though a power buyer can make an industry more competitive, it can reduce the prot potential for the seller. Please suggest few strategies for sellers to deal with the power buyer. (12 Marks) htt s:flwww.businessinsider.ianow-Walrnart-kee s-its- rices-so- lowfarticleshowf 783 136.cnis