Current Market Conditions Competitive Analysis
ECO/365
March 4th, 2013
Week 3 team assignment
Current Market Conditions Competitive Analysis
Introduction
In a society that has seen historical economic fluctuations and shifts in one’s long-term employment, consumers are searching for the best bargains they can find. Consumers across the United States are looking for ways to save money; thus, searching for stores that will provide them with everything they need at a lower cost. Companies around the United States are fighting to stay competitive and are seeking ways to restructure their company, and still provide for consumers the best prices. It is within this economic backdrop that people will study a leader in low cost, high
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Impact of New Companies Entering the Market
Currently, there are roughly 7,800 Wal-Mart stores worldwide (Wal-Mart, 2012), and they are in 16 different markets throughout the world. Throughout the company, Wal-Mart employs more than 2 million people and serves more than 100 million customers a year. Any new company who wants to enter in the same market as Wal-Mart must be able to counteract their size and scale and likely must have a long-term horizon like Wal-Mart. It would take someone decades to match Wal-Mart as well as likely require Wal-Mart’s operations and offerings to reduce in quality. With the reputation that Wal-Mart has established, they take much of the business away from other companies. As for those other companies trying to have an impact in the same market, it will be minimal or non-existent unless the new company specializes in something that Wal-Mart does not offer. Wal-Mart is branching out into other areas of the market, such as groceries, it will have a bigger impact within its markets.
Factors affecting variable costs, including productivity and others that change the supply of and demand for labor For Wal-Mart variable costs involves materials, labor, supplies, and utilities. In businesses that deal with employees’ labor supply and demand should be a consideration by management or ownership. No business that requires
Variable Cost defines the cost of a single assembled product based on the materials consumed and labor invested directly in unit production. To illustrate our point, we can say that making a single baked potato with all of the fixings will cost $3.00 to produce (potato, sour cream, chives, plate, fork, napkin and labor). If we decide to go into the baked potato business, we must then sell these potatoes for at least $3.00 per unit. Any less would cause us to lose money on the endeavor. This cost cannot be made up by increasing volume of sales. Judy Koch discussed the fact that bulk purchases can benefit you reduce these variable costs. If we decided to purchase potato-making materials in larger quantities and hired more workers to produce these products, we could
Since 1962 and the beginning of the discount retailer market Wal-Mart has been ahead of the retail game. By 1967 there were 24 Wal-Marts that had grossed 12.6 million dollars. In just 7 years Wal-mart had spread into 9 states. By 1979 Wal-Mart was the fastest store to reach a billion dollars in sales. In 2005 Wal-Mart has 3,800 domestic stores along with 3,800 stores internationally, and had made over 312 billion dollars. As you can see the Wal-Mart empire has grown monumentally. To move into this segment of the market would be tough.
The opportunities that afford us are enormous! This is the first product on the market and since this is a technology society, it will create excitement in our culture. The purpose of this product is to provide a more convenient product for parents to help in transporting the child from place to place in a safe manner. The car can be operated while the parent is driving the by the car seat remote control. The
Chatter Box is a Cell phone Manufacturer, which has been in business since 1990. Our company has stayed in business so long because of the ability to provide customers with reliable and durable products. We have not had many issues keeping up with the advances in technology; however, recent research has shown us that the competition for cell phone is growing every day. We have also found through extensive research that more customers are moving away from computers and laptops and moving toward wireless, easier to carry tablets. Therefore, Chatter Box has come up our own version of the tablet; we expect our product to do very well
Electronics over the past fifteen years have become an everyday essential in today’s market. The use of personal computers skyrocketed from being in higher income households to common place in almost every home. Equalus Inc. is excited to jump into the world of desktop computers and notebooks by providing service to the masses of a “build-your-own” personal system with tech help and customer service all originating within the United States. Based on a series of questions Equalus will be able to build a desktop or notebook to the user’s needs. Consumers will no longer wonder if their purchase will be able to
Another variable cost to consider is continuing education and training for employees. Like any business, it is important for those in the health and fitness field to stay on top of current trends in the industry. From time to time it may be beneficial and necessary for full-time employees to attend seminars or training sessions to expand their knowledge in the industry. This is a good example of a cost that would not be incurred on a regular basis, but should be budgeted for at least once a quarter. Two variable costs that organizations overlook are office supplies and fuel. In every organization employees use office supplies. In many organizations fuel is needed for
World Of Warcraft derives from the Warcraft series developed by Blizzard Entertainment. World Of Warcraft has been one of the leading multiple player online-based games on the market for years since its initial release. The game maintains a high level of subscriptions that cost a fixed rate of $15 per month. The game itself once controlled over 50% of the multiple player market shares in 2006 for the western region. Subscriptions have reached more than five million by 2006 and exceeded 10 million subscribers for a 2nd time by the end of 2012. Subscriptions for this game have even exceeded 14 million in year 2009. At
A variable cost is a corporate expense that varies with production output. Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases (Variable Cost, n.d.); in the case study for all cost per event such
Variable Costs: hourly wages (per unit), gas cost (per unit), incentives (i.e. restaurant gift cards)
The connecting link is fixed and variable costs this influence the budget formed by the flexible variables. The variable expenses comprise of those business-operating expenses with altering the changeable pricing. These expenses usually modify the relationship of the products or services. For example, an increase in merchandise demand impulsively raises the work and resources costs. For example, heavy rain means more business for lawn services though higher costs for work and gas.
Where possible I will include a link to the relevant Facebook page as this allows you to see actual comments from your target audience.
Variable costs are costs that vary with output. Variable cost changes according to the quantity of a good or service being produced. Generally variable costs increase at a constant rate relative to labor and capital. Variable costs may include wages, utilities, materials used in production, etc. The inputs of Listerine start with Raw Materials (generally composed of diluents, antibacterial agents, soaps, flavorings,
When you talk about Wal-Mart the first thing that you have to remember is that they are the largest retailer in the world. Wal-Mart employs more people in the United States than any other company and is second only to the federal government in the number of employees that they have on the payroll. These are important facts to consider in that due to their tremendous size, Wal-Mart has an enormous
3 variable costs indentified, they are power, operations, material. They are proportional to the revenue intake.
Wal- Mart is directly faced with competitors like K-mart, Target, Winco, Albertsons and wholesale retailers like Costco. The threat form is slightly different in scale putting into account the span of business activities and ability to match dominant actors.