Walmart
So everyone knows that Walmart most of the time has the lowest price. According to CNN.com Walmart is getting ready for another round of promotions just like the ones on black Friday. Do they really have to do it? Walmart already brings in loads of money even with out these promotions, I am not complaining about this at all. My question in this; Do you think that Walmart is turning into a monopoly by trying to do this again with the 2nd round of promtions? Do they really have to do it because of low sales or are they doing this to make more money? This is definitly somthing to think about.
9 comments:
Walmart could be seen as trying to become a monoply by lowerring there prices again. Even if other stores try to lower their prices they still cannot compete with Walmart. Or Walmart could just be trying to get the other consumers that they usually don't get.
I do feel Walmart is on the verge of being a monoply. Their one stop shopping has really caught on. Almost anything can be found a the store. It seems able to not only beat smaller store but also large ones such as K-Mart. I also feel that them making low prices is good because I will shop there in order to make sure my money goes farther.
I do not think that Walmart is on the verge of a monopoly. Sure they are dominate in certain areas but they do have competitors. If you get outside of rural America, there are major competitors such as Fred Meyers. These locations in the bigger cities I believe is a key source of Walmarts income. So these special promotions have to attract people in these areas.
Wal-mart is doing this because they analyzed the positive and negative economic effects of increasing promotion. They found that doing extra promotion would increase their profits. That's all business is, making profit. They are not a monopoly because they decided to promote on a day when they didn't have to, they felt like they had to in order to make money. Nothing is wrong with that.
I do not believe Walmart is a monopoly. They do have competition. Their competition as these promotions so Walmart has to have these promotions to compete
Walmart is definitely trying to be a monopoly not only from this round of promotions, but because there is one located within 5 miles of the next Walmart. Walmart definitely wants to replace all retail/service chains, making it a sort of one-stop-shop where you can buy your tires, get your hair done, and purchase a burger all in one. Through this round of promotions, they are once again suggesting that consumers should come to Walmart for their 'low' prices, do all of their Christmas shopping, and not look to any of their competitors to fullfill their holiday needs.
Walmart is doing the smart move, in terms of business. During the holiday season, Walmart gains competitions from other shopping markets because of the sudden splurge of individuals buying. They are just gaining more customers by attracting them to their store and taking advantage of their flexibility to have these sales.
Here Wal-Mart is just being business savvy. Although they do bring in a large amount of money each year, they still have debts to pay off. The majority of the time during the holiday season I have found many of the same things other places for lower prices than that of Wal-Mart. Therefore they're trying to lower prices of specific goods to still be in business and to compete.
*Recovered Post from December 6, 2005 at 6:23 PM*
Wal-Mart is trying to attone for what proved to be a Black Friday fiasco around the country, I believe. Usually, Wal-Mart is diligent in supplying adequate amounts of promotional items in advance of the holidays, but I noticed in my shopping that there were a few Wal-Marts that I visited that were grossly understocked or even lacking some sale items altogether. Whether it be from Wal-Mart's suppliers not anticipating demand, or grossly undersupplying, there sould be something done to make up for the errors. I believe it is a sound idea, regardless of the circumstances - Wal-Mart is trying to catch the second wave of shoppers who, for whatever reason, missed the items they wanted to buy on Black Friday, or are just now starting their shopping. I don't necessarily support all of Wal-Mart's practices, but this seems to be very savvy of them.
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