Question

Walmart has been opening walmart neighborhood market stores that are one-fifth the size of its supercenters and intended to compete with stores like dollar general. one risk to this effort is __________.

Answer 1

The risk to Walmart's effort in opening smaller Neighborhood Market stores to compete with Dollar General is the negative impact on the local economy and small businesses.

Step-by-step explanation:

One risk to Walmart's effort in opening smaller Neighborhood Market stores to compete with stores like Dollar General is the negative impact on the local economy and small businesses. Walmart's strategy of offering lower prices and a wider variety of products can lead to the closure of small businesses that can't compete with the scale and pricing power of Walmart. This can result in job losses, decreased local spending, and a decline in the economic vitality of the community.

Answer 2

Based on the scenario, one risk to this effort is cannibalization. Cannibalization in business is being defined as a situation in which the new product that are released will likely take the demand and sales of another existing product or the competition of this new product that will result the overall sales to be reduced even if the new product sales are increasing.