Why can't Walmart strong arm the oil companies for lower prices like they strong arm other companies?

Question

I disagree with Christ & Xtracker. Levi's did not need Walmart to sell their product. It's ubiquitous on it's own. Walmart strong armed them to sell the jeans at a lower price, but they didn't want to do business with Walmart because of that lower price. They were forced into it because they would have lost market share if they didn't sell their jeans at Walmart. As a result Levi's closed up shop in California and moved it to a low labor country like Mexico or some 3rd world country.

Answer 1

One thing a bully can't bully is a bigger bully.

Answer 2

Cuz oil is a basic necessity for WM as it is for everyone else. The companies WM "strong arms" need WM to sell their products.

Answer 3

Walmart strong arms only the companies that will let them, I can think of two products that have been pulled from Walmart shelves...undoubtedly because they had had enough.

Answer 4

Sir, go to bed, Sir.

Answer 5

Oil companies do not control the price of oil.  It is a global commodity that is effected by worldwide supply and demand.

Answer 6

most companies want to work with walmart because they get a bigger market share if they do. This way their overhead costs end up costing them less per item.

As for gas, the demand for gas stays the same (almost) no matter what the price, so there is no incentive to bring the proce down. They are still selling a ton. Once prices go up to $5.00 a gallon, I think people will finally make a huge change in driving habits, car buying choices, etc. (My husband, an executive with a long commute) bought a toyota corolla instead of the bmw he originally wanted due to doublethe gas mileage.

Answer 7

I wish people weren't so ignorant with free enterprise, business and the stock market...

go to ANY store that sells any non perishable item and tell me where 50% of the items are made.

If you don't like it, go somewhere else and live and shop... let's say you go live outside the US and then complain.