Current Market Conditions Paper

2160 Words Apr 5th, 2015 9 Pages
Current Market Conditions Paper
ECO 365
University of Phoenix
April 6, 2011

Introduction In a society that has seen such a drastic downturn in the economy, people are searching for the best possible bargains they can find. People 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 all over the United States are fighting to stay competitive and are seeking ways to restructure their company and still provide for consumers the best possible prices. Companies such as Wal-Mart do not have to change their structure to fit the demands of consumers because it already offers its customers brand name items
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However, since Wal-Mart is a large retailer and it operates in a perfect competitive market, it has to be a price taker. Even with its increased sales, Wal-Mart has no control over prices. The company has to be very careful about its prices in order to maintain the market share. The prices cannot be too high or too low. If the prices are too high, Wal-Mart will lose its customers. This will result in losing sales as well as market share because there are many other competitors in the market that offer the same product. Too low prices will not produce any profit or market share gains for Wal-Mart. Thus, Wal-Mart must go with the market-based pricing approach.
Technology
Wal-Mart uses a wide range of technology. When a company fails to recognize the importance of technology, the company runs the risk of being overtaken by competition. It uses a merchandise scanning system that let the managers or employees know if the stock on a shelf is getting low so they can be responsive to consumers’ buying habits, and make sure the items they are looking for are there for them (Solman, 2004). Another recent technology that Wal-Mart has implemented is self-checkout registers. This technology has made it easier and faster for consumers. Instead of waiting in long lines, they can just check themselves out and save some time. As this technology replaces employees, Wal-Mart can save the money that they paid to their cashiers. This could
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