Final answer:
Walmart utilizes a procurement strategy that involves squeezing vendors for the lowest prices, allowing them to offer competitive prices to consumers. This strategy has both positive and negative implications.
Step-by-step explanation:
Walmart utilizes a procurement strategy focused on squeezing vendors to obtain the lowest prices possible, which allows them to pass on these savings to their customers. This strategy is aimed at achieving cost leadership in the retail industry.
By leveraging its massive size and economies of scale, Walmart is able to negotiate favorable pricing terms with its suppliers. This includes pressuring vendors to lower their prices and negotiate bulk discounts.
This procurement strategy has both positive and negative implications. On the positive side, it allows Walmart to offer competitive prices to consumers, driving customer loyalty and market share. However, it may have negative consequences for smaller suppliers and businesses that struggle to meet Walmart's demands for lower prices, potentially leading to reduced competition in local economies.