Market Trends for Wal-Mart

2014 WordsFeb 18, 20089 Pages
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,…show more content…
Cost StructureWages and BenefitsIn several research attempts, Team A has discovered very little current public data on the current wages at Wal-Mart. Wal-Mart is superior with everyday low prices, but is Wal-Mart superior when one considers the market trends of wages and benefits?"Wal-Mart is offering better terms to all the people that it employs," said Tyler Cowen, an economist at George Mason University. "Most of the workforce is not employed in the fist place. The way to increase wages at the bottom end is to have a more productive economy. Wal-Mart is a step in the right direction." (Demos, 2004)Wal-Mart does not set the trends for other similar organizations to follow, and research leads one to believe the market trends of Wal-Mart's wages and benefits to be considerably lower than those of similar markets. However, as stated above, Wal-Mart is working on putting employees first and improving wages and benefits. Fixed and variable costsUsing county and yearly fixed effects to control for innate differences between counties and for macroeconomic shocks, Neumark et al. (2005) look at retail employment per worker and retail payroll per worker at the county level as a function of years since the opening of the first Wal-Mart store in a

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