WAL-MART

Wal-Mart

Abstract

In this study we try to explore the concept of “Wal-Mart” in a holistic context. The main focus of the research is on “Wal-Mart” and its relation with “global sustainability”. The research also analyzes many aspects of “Wal-Mart” and tries to gauge its effect on “competition prevailing worldwide”. Finally the research describes various factors which are responsible for “Wal-Mart” and tries to describe the overall effect of “Wal-Mart” on “global competition and economic trends prevalent around the world”.

Table of Contents

Firm/Industry Analysis - Global Competition

Pick a firm/industry to study

For this paper, we shall be discussing about Wal-Mart and the company's operations, giving out an outlook as per the performance and contribution to the global community on an economic foundation.

What kind of market structure does this firm/industry belong to?

Competing in a monopolistically competitive market, Wal-Mart is an international retail organization that has been established with the objective of becomes a global low-cost provider and simultaneously giving out the best and most cost-effective discounts to both its warehouses.

Who are the major competitors?

Giants and tycoons like Tesco, Target, Kmart, ShopKo and other fight neck-and-neck to target its competitors and gain the broadest customer base.

Elasticity of demand and supply of the firm's/industry's product

To understand the phenomenon of elasticity of demand and supply, in the case of Wal-Mart, the products of Wal-Mart are strongly elastic, since their low-cost providing strategy solely depends upon their tagline and promotional campaign - providing the lowest to people in the market.

The impact of progressive technology advance and globalization to the firm'/industry's market share in the United States and global market

Wal-Mart first introduced grocery products into its Supercenters in 1988, using its powerful supply management tactics to compete at the lowest price point. Such tactics forced other supermarket chains including Grand Union, Bruno's, and Homeland Stores into bankruptcy. Workers at competitors like Kroger, Safeway, and Albertsons worried that their wages would be reduced as a result of the lower wages paid to Wal-Mart employees. Critics questioned the safety of food sold by a company that imports massive amounts of goods from China and used pressure tactics to gain cooperation from suppliers.

How does the firm/industry place itself in the “Green Economy”?

Wal-Mart began implementing its green initiatives in 2005 and promised to have over 400 organic items in stores by the summer of 2006. The demand for organic food has grown 15 percent annually over the past several years. Retailers frequently charge a 30 percent to 40 percent premium for organic food over conventional items. Organic standards have typically been associated with food that is locally produced, using sustainable methods sans pesticides and fertilizers. Free-range chickens, grass-fed beef, and labour-intensive techniques of harvesting produce are among the offerings recognized by educated consumers. The giant retailer's sheer size allows it to negotiate with suppliers about how goods are produced, which could allow Wal-Mart to push manufacturers and competitors to adopt more sustainable practices and organic food. A company-wide goal is to increase the energy efficiency of producing its most energy intensive products, including ...