Strategy; Sustainability Seventh Generation Inc. (SGI) manufactures environmentally friendlycleaning products, including laundry detergent, soap, and all-purpose cleaners. Prior to 2008, SGIwould not do business with Walmart because of the perception of a poor environmental record at thelarge retailer. In 2008, SGI realized that, despite the perception of Walmart’s environmental record, itwas important to partner with the big retailer in order to have the largest possible impact on consumers—to bring environmentally friendly products into the mainstream. In August 2010, the partnership wasarranged and SGI’s products started to appear in Walmart’s stores. While most cleaning productssold at Walmart are offered at a lower price than SGI’s products, the difference is not significant, andthe Walmart prices compare well to SGI product prices at supermarkets where these products arealso sold.Required Is this partnership a good strategy for (a) Walmart or (b) Seventh Generation Inc.? Explainwhy or why not
Strategy; Sustainability Seventh Generation Inc. (SGI) manufactures environmentally friendly
cleaning products, including laundry detergent, soap, and all-purpose cleaners. Prior to 2008, SGI
would not do business with Walmart because of the perception of a poor environmental record at the
large retailer. In 2008, SGI realized that, despite the perception of Walmart’s environmental record, it
was important to partner with the big retailer in order to have the largest possible impact on consumers—
to bring environmentally friendly products into the mainstream. In August 2010, the partnership was
arranged and SGI’s products started to appear in Walmart’s stores. While most cleaning products
sold at Walmart are offered at a lower price than SGI’s products, the difference is not significant, and
the Walmart prices compare well to SGI product prices at supermarkets where these products are
also sold.
Required Is this partnership a good strategy for (a) Walmart or (b) Seventh Generation Inc.? Explain
why or why not
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