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(Revised from original 2006 version)
Wal-Mart's Business Environment
In 2004, Wal-Mart Stores, Inc. proposed to build a new supercenter in Inglewood, a low-income community near Los Angeles. The proposal was a part of Wal-Mart's strategy to bring its supercenter format to California. Introduced in the late 1980s, supercenters added a full line of groceries and specialty departments to Wal-Mart's traditional assortment of general merchandise. Wal-Mart's planned entry into California caused problems even before the discounter opened a single supercenter. To compete with Wal-Mart, supermarkets in California cut grocery workers' health benefits and wages. The unions ordered a strike against the supermarkets. The labor unrest lasted five months and involved 70,000 workers. In the meantime, Inglewood's city council rejected Wal-Mart's request to build a supercenter. The retailer took its expansion plans directly to the voters of Inglewood. With the help of the California initiative process, Wal-Mart forced a public vote on the proposed 60-acre development. Will Inglewood's voters dampen the shine of "America's most admired company?"
Keywords: Goals and Objectives;
Market Entry and Exit;
Conflict and Resolution;
Oberholzer-Gee, Felix. "Wal-Mart's Business Environment." Harvard Business School Case 706-453, December 2006. (Revised from original January 2006 version.)