Question

In the Walmart discussion in this chapter it sounds like Walmart is saving massive amounts of money through their conservation programs. What reasons can you think why the initiative has not been immediately copied by similar companies?

Answer 1

It seems that the size and the scope of Walmart as a multinational company is huge. It can set terms and conditions on other companies with which it deals so as to reduce its environmental footprint in an order conducive to it. Primarily other companies are not following the suit because they are size is comparatively small, and cannot invest in more energy efficient technology in parallel to Walmart. Walmart carries millions of product in its thousands of stores so it has a very strong supply chain management which is not enjoyed by other companies. It therefore can influence truck manufacturers to make their vehicles more energy efficient, can control sourcing of many products forcing them to adapt greener technologies. Because of the market power and financial health of other firms are not in match with Walmart they are not copying the initiative.