Current Market Conditions Competitive Analysis

1592 Words7 Pages
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
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