Citation
The causes and consequences of Wal-Mart's growth
TL;DR
Walmart's growth followed predictable saturation curve
Basker's economic analysis of Walmart's growth trajectory shows how the company approached and hit saturation limits. The paper documents the shift from rapid expansion to market saturation and the economic dynamics of retail competition.
This provides empirical foundation for understanding competitive walls - how market penetration creates diminishing returns and eventually cannibalization.
Key Findings from Basker (2007)
- Walmart's growth followed predictable saturation curve
- New store openings eventually cannibalize existing stores
- Market saturation requires strategic pivot to new growth vectors