Wal Mart Effect On Consumers And The Market - 1572 Words

The Wal-Mart Effect When it comes to grocery stores Wal-Mart obviously dominates the market. When arriving at one of their â€Å"supercenters†, you can tell from the outside of the store and the grand size of their parking lots that any of the given stores probably brings in more customers in one day than many other competitors do in one week. In the book The Wal-Mart Effect by Charles Fishman, Wal-Mart’s effect on consumers and the market as a whole is explained through many different economical meanings. The market for groceries has been completely altered since Wal-Mart began to grow substantially. Charles Fishman makes it a point to show just how much of the grocery market Wal-Mart controls. In 2010, total sales were $419 billion (1). The supermarket industry is an oligopoly. An oligopoly is a market structure in which there are only a few firms and firms’ explicitly take other firms’ likely response into account. The amounts of businesses that have a major impact in this market are very few, definitely less than ten. When Wal-Mart first came into business, its success was dominantly determined by their response to other firm’s decisions or simply their prices. Sam Walton, Wal-Mart’s founder had started his strategic tactics as soon as Wal-Marts began to open. â€Å"The point of Wal-Mart was firmly established by store #2†¦ ‘†if we could do a 10 percent discount versus the downtown drugstore we were king† (24). To this day Wal-Mart still prides itself on its low prices.Show MoreRelatedEssay on Mgt/230 Internal and External Factors1504 Words   |  7 Pagesbusiness functions. One can examine almost any organization and find this to be true. Wal-mart is one of the leading retail organizations in the world whose management functions are affected by these factors. Wal-Mart has dominated the global market by operating in 27 countries outside the United States. 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