Trends and Future Conditions of Wal-Mart







Trends and Future Conditions of Wal-Mart

            The retail industry has been characterized by dynamism and unpredictable trends. The market is continually changing calling for move savvy entrepreneurs who are able to decipher market trends and project future customer needs to stay in touch with the market. Wal-Mart is currently the largest retail company in the globe. The company boasts of worldwide outlets with its base in the United States of America. However, the company also has to come to terms with the dynamic market trends and approach them decisively to maintain its global market niche. Market trends such as market structure, the effect of new entrants in the market, prices, technology and other aspects such as productivity and cost structure including government regulations indicate that company is highly likely to stay at the top in the future (Krafft, & Mantrala, 2006).

There is the undeniable fact that the company’s growth is unstoppable if the company is to abide by its values, mission statement and goals. This indicates the company’s market structure is likely to stay the same. Through the application of the concentration ratio method, it is evident that the company’s annual sales will remain higher in comparison to other market players in the industry. However, these other players are still bound to give the company a run for their money since their presence in the market is bound to remain. Bearing in mind that the company is an oligopoly, the company will continue with its expansionist strategy, opening up new stores and launching into new markets using strategic pricing. This growth will mean that some companies that will have to fold up while others registering minimized sales. The company will continue growing based on its cartel model and the restriction of new entrants into the market. Although this may lead the company into being a monopoly in certain markets, its low-pricing strategy will ensure the customers benefit from competitive prices and a wide variety of choices (Jefferys, & Knee, 1962).

The future indicates that there will also be new entrants in the market. This will consequently have the effect of having Wal-mart price its products even lower. The company maintains the advantage of having a wide variety of suppliers thus reaps the benefit of purchasing from the cheapest supplier. Having suppliers from all over, the world also ensures that the company can acquire the best quality raw materials. This ensures that the company avails to the customer products that are both of high quality and relatively low prices in comparison to the new entrants. In this case, new entrants will minimally affect the company’s position in the competitive field or its potential. However, the new entrants may have the effect of having the company reviewing its image, take careful consideration of the local cultures and look into new products to cater to the high-income shoppers.

Changes in prices highly affect the structure of the company. This is mainly because is founded on the policy of providing products at the lowest prices. Future trends on prices indicate that these will continue to rise. This is mainly attributed to the global inflation levels. Since the company, is not capable of controlling global inflation, then future increase in prices will negatively affect the company in keeping up with its policy of availing products at cheap prices (Heilbrunn, & American Marketing Association, 1995).

Technological advances are inevitable. However, such will end up cementing the company’s position at the top in the market. This is primarily because the company highly adopts new technology and uses its for its won advantage. This can be evidenced through the way the company has adopted E marketing into its organization structure and now consumers can now purchase commodities at remote locations. Changes of wages and benefits in the future are bound to influence negatively Wal-Mart’s potential in the market, its position in the competitive field Government regulations are also bound to change in the future. This is because the company boasts of having employed very many employees. If each of these employees is going to have their wages and benefits increased, the increase in costs may therefore be passed on to the consumer. This is primarily because the world is now crossing over into globalization whereby states are being compelled to abandon policies that restrict free market. Globalization and the inception of free market have been known to favor multinational companies highly in comparison to local companies. Wal-Mart, being a multinational company, is also bound to benefit from this and therefore facilitate its growth (Baumohl, 2005).



Baumohl, B. (2005). The secrets of economic indicators: Hidden clues to future economic trends and investment opportunities. UpperSaddleRiver, N.J: WhartonSchool Pub.

Heilbrunn, J., & American Marketing Association. (1995). Marketing encyclopedia: Issues and trends shaping the future. Chicago: American Marketing Association.

Jefferys, J. B., & Knee, D. (1962). Retailing in Europe: Present structure and future trends. London: Macmillan.

Krafft, M., & Mantrala, M. K. (2006). Retailing in the 21st century: Current and future trends. Berlin: Springer.


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