This change in the focus of power is something that is not normal in the history of our economy. Generally the manufacturer produces and sells at a specific price, where as with Wal-Mart they tell the manufacturers at what price they want to buy the products being manufactured. This puts supplier in a bind because they are forced to create the same product at a lower price. Thus, if the manufacturer sells at a lower price, it means the drop in costs must come from somewhere along the supply chain. One of the results is a movement of manufacturing towards other countries that can provide the product for cheaper. This often puts American companies out of business or makes them cut back.

Another impact is on the use of cheap labor and manufacturing that is solely focused on global cost cutting. The lower prices of Wal-Mart lead to lower wages for employee's making the products and to a lower standard of living. It all stems from a need to provide the maximum profit for investors each quarter. I believe this should not be the way.
One company that is focused on not just profitability but sustainability is the Mars Corporation. You all know the candy people but they are doing some really interesting work when it comes to this idea of profitability vs. sustainability. They posit that over time, maximizing profit is not beneficial to the company, its workers or the world. According to a document put out by Mars this idea is described as this:
"In the mid-1990s consultant John Elkington coined the notion of “triple bottom line” accounting, hoping to define how a company can extend its decision-making criteria beyond profit alone. This idea expands traditional reporting frameworks and seeks to quantify corporate environmental and social performance alongside traditional measures of financial success. The triple bottom line has been – and remains – a useful tool for identifying problems and integrating sustainability into a company’s agenda." (Sustainability at Mars, 2007)
This, I believe should be the way a company views its goals. Not just looking at profitability (like Wal-Mart), but seeking to make a product that has the mutual benefit of the company and all those along the supply chain (including the environment).
Ok, I will get off my soapbox now...