There has been a power shift in the way manufacturers and retailers do business. Historically, the manufacturer had the most power and retailers were the subordinates at the mercy of large manufacturing outlets. However, as Wal-Mart achieved fame and prosperity, the fundamental aspect of Wal-Mart culture, cost cutting, changed the rules of the game. You can see this by examining Rubbermaid's decline. Rubbermaid was a large supplier to the Wal-Mart Corporation, and for a time both partners were satisfied with their agreement. But, when the price of resin increased, Rubbermaid was forced to raise prices across the industry to all retailers. Wal-Mart refused to accept the increase citing the need to keep prices low, and abandoned a significant portion of Rubbermaid products for several years. It caused enormous financial strain for Rubbermaid, and former CEO Carol Troyer lists it as one of the first signs of Rubbermaid's decline (Is Wal-Mart Good for America). The company was eventually sold to Newell in 1999 and the contents of the facilities were auctioned off. Wal-Mart has gained the upper hand in the retailer-manufacturer exchange, where manufacturers are now at the mercy of large discount retailers like corporate giant Wal-Mart. Now Wal-Mart, the retailer, comes into the room with several
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