Essay on Marketing

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All companies compete with one another; they strive for excellence and to be the best. They have to compete with each other to win over markets and to be the one who ends up on top. Most businesses are guided by the maxim "nothing ventured, nothing gained" (Spulber 7). Winning a market requires a company to have an aggressive investment and growth. Although many companies try to keep costs down for the consumer, low costs are not always the solution for every situation. It is generally the Chief Executive officer (CEO) who formulated strategies to connect markets. The CEO has to have the ability to for see the future of the company in order to make intelligent decisions. Wal-Mart was founded in …show more content…

Market share really isn't an indicator of current or future profitability; however, firms try to be the market leader in terms of sales so they can achieve a competitive advantage. "In addition to having the largest sales, firms also need to offer a greater product variety then its rivals" (Spulber 55). Not only are there many competitive advantages, for offering consumers more choices, but there can be cost advantages as well. Wal-Mart takes full advantage of economies of scope and in distribution. Wal-Mart superstores take advantage of economies of scope by spreading their store operation costs across products. Since Wal-Mart had over 50,000 items to offer the company spreads the cost of a computerized distribution system over twenty state-of-the-art regional distribution center. Wal-Mart had a satellite communications system that is able to respond to customer demands and can provide detailed information of sales to the companies suppliers.
The span of a company is also something that is very important. "The span of the firm is a crucial aspect of the way in which the firm defines its activities" (Spulber 57). A characterization of the firm as a service company, manufacturer, wholesaler, retailer, or integrated manufacturer distributor refers to the span of a firm. The companies choice of its span is a vital component of its strategy, Economies

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