Market Trends for Wal-Mart

Essay by luvuchaluka February 2008

download word file, 8 pages 3.7

Downloaded 414 times

Market Trends for Wal-MartWal-Mart has to face ever changing market trends. A few of these market trends may change the market conditions of Wal-Mart. Research is compiled on trends such as market structure, the impact of new companies entering the market, prices, technology, productivity, cost structure, price elasticity of demand, competitors, supply and demand analysis, and the impact of government regulations. By discussing these market trends one can see how Wal-Mart will change or will not change, in order to continue to thrive and grow in tomorrow's economy.

Market StructureWhile the fact exists that Wal-mart's growth is unstoppable, the company's market structure will not change. If one would apply the concentration ratio method, he or she will see how Wal-Mart's annual sales will be higher than any other firm in the industry, but other top firms will still be seen in the competition. As an oligopoly firm Wal-Mart will continue to open stores in the United States and worldwide, using strategic pricing.

The company's growth will cause other small business to close, but there will still be other competitors. Wal-Mart will continue its growth following the cartel model, and limiting the entry of new firms. Although Wal-Mart's growth will make it appear as a monopoly, customers around the world will still benefit from having different choices.

Impact of New Companies Entering the MarketNew companies entering the market will drive Wal-Mart's prices even lower. Globalization will continue to make new companies entering the market "international companies." Wal-Mart may increase marketing its products online and by catalog to stay current with consumer trends. The impact from competition around the world will encourage Wal-Mart to polish its image, learn about local cultures, and launch new brands for higher income shoppers. "That way it won't run the risk of alienating its core shoppers who...