Market Power Of Walmart

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Background According to Yahoo finance Wal-Mart Stores, Inc. was founded in 1962 by Sam Walton and its headquartered is located in Bentonville, Arkansas. Currently this year Walmart it is operating 11,527 stores under 63 banners in 28 countries and e-commerce Websites in 11 countries. The organization has over 2, 300,000 employees operating in those various locations all over the world. It is a company that operates retail in various organizations worldwide, through three portions Walmart U.S., Walmart Worldwide, and Sam’s Club. Some of the different companies it operates are discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, cash and carry stores, home improvement stores, specialty electronics stores, apparel stores, …show more content…

Brux stated in the book economics issues and policy that “Walmart has market power because it is the world’s largest privately owned company, with thousands or employees and earning profits of tens and thousands of dollars”. Walmart has been in the rise above its competitors because they have adopted a business concept of reducing costs, and then challenging their competitors on price. In the United States Walmart is the number one largest retail market and is a major competitor in all surrounding markets in which it operates. In spite of having the biggest piece of the pie, despite everything it confronts a solid competition from Costco. Jurevicius (2016) expressed that “the company can also affect the competition by selling selected items at a loss, thus driving competition out of the market”. Walmart could raise wages and advantages fundamentally without raising costs, yet still gain a solid benefit over its most prominent rival Costco. Price …show more content…

Some examples of their low price strategy is to make sure you don’t pay too much like other retailer, if you do they give you your money back in store credit. According to Consumer Bob (2014) “they also have a website where customers can sign up and register their receipt after each shopping trip, and within 72 hours the Walmart price tool then compares that receipt with sale items at different local stores. They can provide the customer with an immediate credit or they can keep getting the credit and accrue over time and make purchase on it later”. Another price strategy is that they have a monthly sales on selected items and clearance every other Friday (Busines

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