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? (b) Seventh Generation, Inc.? Explain why or why not.