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Market Model Patterns of Change

Essay by   •  July 7, 2012  •  Research Paper  •  1,237 Words (5 Pages)  •  1,905 Views

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Wal-Mart was founded by Sam Walton, with the first Wal-Mart store opening in Rogers, Arkansas, in 1962. Annual sales were over one billion dollars after the first seventeen years. Wal-Mart Stores, Inc. was the world's largest retailer with over $218 billion in sales by the end of January 2010. The strategy foundation that Wal-Mart uses in the United States are based on them selling brand-name products at low cost, thereby enabling the lower class and middle class consumers to shop for products and save. Due to the advances in technology over the years Wal-Mart has been able to achieve tremendous success. Wal-Mart's success has allowed the company to expand out of the United States.

About 100 million customers visit a Wal-Mart store somewhere in the world. Wal-Mart's marketing strategy was to guarantee "everyday low prices" as a way to pull in customers. Traditional retailers relied on advertised "sales." The company employed more than 1.3 million associates worldwide through more than 3,200 stores in the United States. Wal-Mart was named number one on the Fortune 500 list and was presented with the Ron Brown Award for Corporate Leadership, a presidential award that recognized companies for outstanding achievement in employer and community relations. Wal-Mart enjoyed a fifty percent market share position in the discount retail industry. Procter & Gamble, Clorox, and Johnson & Johnson were among its nearly 3,000 suppliers.

In a world that has a structure of dominating competition market, Wal-Mart Stores, Inc. seems to have a significant impact on the market structure. But because retailers are far too many to deal with, they also have a structure of control of the competition market. However, Wal-Mart would rather this way because they were not hurt at all by the competition. The reasons for the success of Wal-Mart have been their ability to create a basic structure for their own business ecosystem. Wal-Mart came to the conclusion that if they offered a variety of brands and has sold about fifteen percent cheaper than other retailers, this would make them a powerful force in retailing.

In less than thirty years of continued existence, Wal-Mart has grown from a small single discount store in Rogers, Arkansas, to the largest retailer in the country. Sears Roebuck and Company held this title, but in early 1990 they were exceeded by Wal-Mart and Kmart. Sears took over second place as the nation's leading retailers, but it seems Wal-Mart can never be taken (Basker, 2007). At the end of 1996, Wal-Mart Supercenters had sixty-two percent of total proceeds. Sales for 1996 totaled 17.78 billion dollars, an increase of $ 11,510,000,000 for the year value. These figures and the numbers Wal-Mart still others continue to grow year after year, and at this rate, it can be difficult to maintain a structure of dominating competition market. They may have no choice but to consider a structure of control. Technology, productivity, cost structure, and government regulations are factors to be considered in Wal-Mart's marketing strategy.

The that factor in Wal-Mart's marketing strategy are Wal-Mart can best be noted for their ongoing process of improving the technology, the process of invention, innovation and how it is distributed throughout the entire company. Technology changes from the earlier days have been eradicated and refurbished with a model of technological change that necessitate innovation at all stages of research, development, distribution, and use (Basker, 2009).

The price and technology will change the demand and at a rapid pace. An important factor contributing to both price and technology changes is the competition. As changes in competition, the company must adapt and adjust prices and advance their technology as quickly as and hopefully faster than the competitor. If a company

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