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Michael recalculates Walmart’s income statement based on the strategy he has developed for Walmart to enter the category and beat Toys-R-Us.
Kevin explains why Walmart’s strategy is mistakenly assumed to be its significant purchasing power. Kevin explains the advantage that leads to the purchasing power.
The case is projected into the future to determine what is likely to happen to Toys-R-Us, their options for responding and the probable outcome.
Kevin flips the case around, by using Michael’s new knowledge of Walmart, to develop a response strategy for Toys-R-Us.