Wal-Mart’s power is derived from their size and the influence that
comes with it. A quick look at Wal-Mart’s numbers is the proof of Wal-Mart’s
size and power. Some of Wal-Mart’s numbers include 23% of Clorox’s sales
and 20% of Revlon and RJR Tobacco’s sales.[2] If these companies choose to
walk away from their supplier relationship with Wal-Mart, then they would
lose out on nearly a quarter of their revenue. The fact of the matter is that
this same concept extends to all of Wal-Mart’s other suppliers like Kraft,
Proctor & Gamble, Gillette, Campbell’s Soup, and many more.[3] The reality
that these suppliers live in is one where they know that their Wal-Mart
account is one that they cannot afford to lose. In fact, suppliers are also
faced to look at the predictions that, in an estimated five years, Wal-Mart will
double in size, which mean Wal-Mart’s account with only continue to grow.