Browse Case Studies by
Case Studies in
- Corporate Governance
- Corporate Social Responsibility
- Economics
- Enterpreneurship
- Finance, Accounting & Control
- Leadership
- Marketing
- Organisational Behaviour / HRM
- Social Entrepreneurship
- Strategy
- All Case Studies »
Concept wise Case Studies
- Global Automobile Industry
- US Automobile Industry
- Media and Entertainment Industry - Vol. III
- Media and Entertainment Industry - Vol. II
- India Inc.: The Competitiveness
- » All Concept wise Cases
Industry wise Case Studies
- Film industry
- Animation Industry
- Steel Industry
- Mobile Telecommunications
- Commercial Aviation
- » All Industry wise Cases
Region wise Case Studies
Industry Analysis Case Study
Case Title:
Organic Food Market in the US: The Wal-Mart Effect
Publication Year : 2006
Authors: Taranjeet Chawla, Kumar Satyaki Ray
Industry: Organic Food
Region: US
Case Code: INA0057K
Teaching Note: Not Available
Structured Assignment: Not Available
Abstract:
In the wake of a rapidly growing market for organic products in the US, in March 2006, Wal-Mart, the world’s biggest retail chain, announced that it would include more organic products in its grocery section. The management of Wal-Mart hoped to attract more and more customers to buy its organic items thereby promoting the consumption of organic products. While some analysts believed that it would increase environmental awareness among the consumers and prompt the farmers and supplier to adopt green practices, another set of analysts felt that Wal-Mart could use its market strength to exert pressure on farmers and suppliers to its own advantage.
The case starts with a short history of organic farming in the US and moves on to Wal-Mart discussing it business briefly. It then highlights Wal-Mart’s business practices over the years and finally tries to raise a question regarding what could be the possible repercussions of Wal-Mart’s entry into the organics.
Pedagogical Objectives:
- To get an understanding of organic farming
- To analyse the impact of Wal-Mart’s entry on the organic food market of the US
- To debate whether Wal-Mart’s entry would drive suppliers to adopt organic farming or exert pressure on them for lower prices.
Keywords : Wal-Mart; Organic food; Retailing; Organic farming; National Organic Programme (NOP); Supercentre; Sam's Club; Neighbourhood market; Grocery retailing; Industry Analysis Case Study; US farmers; Organic seal; Supermarket; Discount store; United Food & Commercial Workers