Market Trends for Wal-Mart

Essay by mzarbolCollege, Undergraduate February 2010

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Market trends refer to the general movement of an investment market (wiseGeek, 2009). In every aspect of the any business, market trends are important and should be evaluated to help with key initiatives. Wal-Mart, Inc.'s senior executives will help to make key decisions on challenges ahead or key issues facing the companying on a short and long-term basis. For this week's team paper, market trends will be reviewed in the areas of market structure, new companies entering the market, prices, technology, and productivity. Furthermore, additional trends will be reviewed as it relates to cost structure, price elasticity of demand, competitors, supply and demand, and impact of government regulations.

Market StructureWal-Mart, being the leader in retail, has strategized during this season to maximize profits for its store, contingent upon its competitors' strategy. As (Colander, 2008) explains how organizations in an oligopoly market reacts, "If my competitors act one way, I'll do X, but if they act another way, I'll do Y" (p.

289). For example, in reaction to its competitors' advertising and to ensure that it remains ahead of this market trend, Wal-Mart kicked off its "Pre after Thanksgiving" sales on November 21, by offering between 42% to 60% savings off its already low prices (Wal-Mart 2009a). According to its website, "U.S. Shoppers who want to get a jump start this weekend can find values in Entertainment they would expect to see after Thanksgiving Day. We will continue to deliver amazing savings on popular items, and to do so often." As retailers continue to compete with each other for business, shoppers will continue to reap the benefits.

Impact of New CompaniesAs new companies enter the market on a global level, keeping prices low will be a key aspect. Although Wal-Mart's focus is keeping consumers happy by offering low everyday prices (Wal-Mart...