Answer To: Assignment Details Using the company research you conducted in your Unit 6 submission, write a paper...
Sunabh answered on Feb 12 2021
Running Head:MICRO ECONOMICS OF WALMART 1
MICRO ECONOMICS OF WALMART 5
MICRO ECONOMICS OF WALMART
Table of Contents
Introduction to Walmart 3
Product Market of Walmart 3
Market Position of Walmart 3
Competitors of Walmart 4
Economic Concepts used by Walmart to gain Advantage 4
Walmart’s Competitive Advantage 4
Walmart’s Market Structure 5
Recent News related to Walmart 6
Response of Walmart to Challenges 6
Labor Markets 6
Consumer Markets 7
Conclusion 8
References 9
Introduction to Walmart
Walmart is an American retail corporation, located at Bentonville, Arkansas. Walmart was established by Sam Walton in the year 1962 in Rogers, Arkansas. Now, it is trying to expand its operations around 50 countries with 2million employees. It isthe world’s largest revenue generating family owned Business Corporationaccording to Fortune Global 500 (Mahoney, 2019). Walmart mission has been “helping people throughout the world by saving money and live better anytime and anywhere in retail stores through ecommerce.” Walmart has vision “To be the destination for customers to save money, no matter how they want to shop” along with their key value proposition to provide daily needs to be fulfilled for the families running busy in their daily chores.(Mahoney, 2019).
Product Market of Walmart
Walmart is a monopolistic competition market, because more retailors, such as, Amazon, Best Buy, Alibaba, Home Depot, IKEA are present in U.S. Further, Walmart can issue at discounted price that is, fixing own price to the market. However, Walmart can also be placed as an Oligopoly because of the existence of more similar type of retailors in a market. The company has established new formats for their retail business which includes the Sam’s Club discount warehouse formed in 1983 and later in 1988 they have established the Walmart Supercenters. (Mahoney, 2019).The grocery market share of Walmart is 23%, which is a significant amount to make it the market leader.
Market Position of Walmart
According to audit report 2019, Walmart had 3570 supercenters and 386 discount stores, 813 neighborhood, and other small stores. Overall, it has 4769 outletswithin United States of America. Moreover, in the international market, number of outlets is 5993, and in 2019, Walmart generated a revenue of $5, 14,405 along with the net income generated during the year is $6,670.
Competitors of Walmart
Walmart’smain competitors are Amazon and Best Buy. Best buy is another American multinational company which retails the consumer electronics items and was established by Richard M. Schulze with its headquartering located in Minnesota, United States of America. Amazon a multinational firm based in America deals with the online platform. It mainly focuses on e-commerce, cloud computing, artificial intelligence and digital streaming, and established by Jeff Bezos, with the headquarters situated at Seattle Washington, United States of America.In the fiscal years, 2019 and 2018 Walmart comparable sales increased 3.7% and 2.1% respectively.
Economic Concepts used by Walmart to gain Advantage
Walmart’s Competitive Advantage
Basker (2007) stated that Walmart is a company and its competition is with the Omni-channel retail outlets mainly operating with discount, retail, departmental stores, wholesale grocery stores, specialty stores, supermarkets, hypermarkets, super-centric type stores, and provide the retail services through e-commerce platform. It possesses a control in order to develop, open and operate units at the correct locations. This is majorly to provide an...