Wal Mart Deriving Business Value From Sustainability Strategy

3022 words - 13 pages

Abstract

The decisions that businesses make to adjust “pricing, output, expansion, advertising, marginal revenue, and profit conditions of every other firm in the market”. (Thomas, Maurice 2010, p. 561). An oligopoly is described in the book as a “few relatively large firms, each with a substantial share of the market and all recognize their interdependence.” (Thomas, Maurice 2010, p. 512). Meaning, direct competitors understand their internal decisions will affect not only their profits and placement in the market, but also greatly their competitors. Price cutting or expensive advertisement plans will affect the firm’s profit margins, but also with strategically place the competing ...view middle of the document...

(Thomas, Maurice 2010, p. 513). The majority of the competition is between Microsoft and Apple, with Microsoft, as the dominant company with a staggering 85.17% and Mac with 13.64%. (State Owl, 2012)

Although, the competition is legendary between these two companies, they have rivaled one another within retail stores, creative advertisement, and price and cutting edge technology. (MacManus, 2013) Where one has gained the other one may have “loss”, but they continue to fight for their captive audiences, as technology becomes more of a necessity rather than a luxury item for current and future generations. An example would be when Microsoft found itself at a “loss” between the IPad by Mac and the Chrome book. (Kanjhan, 2013) No matter how hard they tried to penetrate the market with innovative tablet technology, they were not as successful with their product. Although, Apple appears to dominate the market with gadgets such as phones and tablets, one can make that determination by a quick glimpse of financial numbers with annual revenues, market value and quarterly dividends. (Kanjhan, 2013) Microsoft is on a declining slope to maintain their market share of their users vs Apple’s ability to take market share through innovative technology and creative marketing. Ironically, the consumer is willing to pay more for as Apple goods than Microsoft. However, Microsoft has taken action within their market by utilizing strong competing products against Apple, the company has tremendously deep pockets for R & D and also can recruit some of the smartest people in the market. (Kanjhan, 2013) Probably, the most competitive and innovative concept used by Apple is they have targeted the youth. Before, computers when even in schools, Apple sprung into action by putting computers into schools, which Microsoft was putting them into the work place offices. The new demographics seems to be trending more to the leading edge technology that they grew up with in their school systems. Both products are equally good in their own preference, but these companies are competing for market share of a necessity of technology and not of a luxury.

Although, there are many oligopoly type industries from aircraft builders to oil refineries, another industry that competes within its same market is Lowes and Home Depot. Home Depot has become the world’s largest home improvement retailer, which they cater to “do-it-yourself” and professional contractors. (Tolunay, Wang, Ma, Zhang) Similar to Home Depot, Lowes also has a “do-it-yourself” gimmick and operates with fewer stores and state locations. The concepts that have made these companies an oligopoly are several factors, “one stop shop”, low prices, do-it-yourself, buy-it-yourself, convenient locations, and excellent customer service. (Tolunay, Wang, Ma, Zhang) A few of their strategic moves for success for Home Depot is their expansive distribution channels and their e-commerce strategy to bring in new areas of...

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