Cut The Suppliers

Wal-Mart recently announced efforts to suspend the sale of cigarettes in their stores. Citing the move as a way to promote a greener and more health-conscious Wal-Mart, this action may actually bear more economic motives. A recent blog in BusinessWeek suggests the recent tax hike on cigarettes -- up 61 cents to $1.01 per pack -- could have serious consequences on future demand of cigarette sales.

However, this move by Wal-Mart poses an interesting question: if Wal-Mart, a company that sees $.03 for every dollar in sales as profit, considers cigarettes an unprofitable venture in the future, then how will other retailers respond? Will there even be a response? And, should there be a fat tax?

This would be a good time for a Porter's Five Forces...