Week 6 Individual Business Proposal
Business Proposal
ECO/561
May 7, 2015
Business Proposal
This proposal is focused on introducing a new product into an existing line of business and to discuss how to create a good to raise the organization 's revenue. Mentioned will be the concepts of the elasticity of demand, market structure and profit maximization techniques which would be helpful to further this good and also the barriers to entry. Pricing strategies and product differentiation will be the other important topics which will also be discussed. I have chosen the organization Walmart Stores, Inc.
Walmart is a multinational retail store corporation in the United States that operates chains of discounted department and warehousing stores across the country. Based on Fortune Global 500 data, Walmart is the third largest corporation and employs more than 2.2 million associates and is the largest retailing company in the world. The company was founded in 1962 by Sam Walton and became incorporated and made its debut in late 1969. Walmart was first publicly traded on the New York Stock Exchange in 1972. The company is headquartered in Bentonville, Arkansas. To this day, the organization possesses the distinction of being America 's largest retail store.
Market Structure
Walmart first extended common stock to the public in 1970 and started trading on the New York Stock Exchange on August 25, 1972. Walmart Stores, Inc. operates with an oligopoly market structure and because of their excess of retailers to deal with. Walmart is a giant with a monopolistic competition market structure. The company 's size makes it powerful enough to have driven smaller retail companies out of business and forced manufacturers to be more efficient. Walmart 's effects on its competitors are when one store opens in areas; three retail competition stores will close its doors within two years. Walmart consists of higher barriers to entry into the market once it penetrates the market, and this makes the company more
ECO/561
May 7, 2015
Business Proposal
This proposal is focused on introducing a new product into an existing line of business and to discuss how to create a good to raise the organization 's revenue. Mentioned will be the concepts of the elasticity of demand, market structure and profit maximization techniques which would be helpful to further this good and also the barriers to entry. Pricing strategies and product differentiation will be the other important topics which will also be discussed. I have chosen the organization Walmart Stores, Inc.
Walmart is a multinational retail store corporation in the United States that operates chains of discounted department and warehousing stores across the country. Based on Fortune Global 500 data, Walmart is the third largest corporation and employs more than 2.2 million associates and is the largest retailing company in the world. The company was founded in 1962 by Sam Walton and became incorporated and made its debut in late 1969. Walmart was first publicly traded on the New York Stock Exchange in 1972. The company is headquartered in Bentonville, Arkansas. To this day, the organization possesses the distinction of being America 's largest retail store.
Market Structure
Walmart first extended common stock to the public in 1970 and started trading on the New York Stock Exchange on August 25, 1972. Walmart Stores, Inc. operates with an oligopoly market structure and because of their excess of retailers to deal with. Walmart is a giant with a monopolistic competition market structure. The company 's size makes it powerful enough to have driven smaller retail companies out of business and forced manufacturers to be more efficient. Walmart 's effects on its competitors are when one store opens in areas; three retail competition stores will close its doors within two years. Walmart consists of higher barriers to entry into the market once it penetrates the market, and this makes the company more
References: (2009). Competitive Strategies to Increase Sales and Profits. Retrieved from: http://www.businessplanhut.com/competitive-strategies-increase-sales-and-profits (2014). Walmart: Corporate & Financial Facts: Retrieved from:http://news.walmart.com/walmart-facts/corporate-financial-fact-sheet https://dominic92.wordpress.com/2010/02/10/wal-mart-and-its-oligopolistic-market-structure/ Hamel, G. (2015). The Importance of Marginal Revenue. Retrieved from: http://yourbusiness.azcentral.com/importance-marginal-revenue-7900.html Kokemuller, N. (2014). Small Business: What the Price Elasticity of Demand Shows and How Substitutes Affect Elasticity. Retrieved from: http://smallbusiness.chron.com/price-elasticity-demand-shows-substitutes-affect-elasticity-74171.html Long, N. (2014). Small Business: What Happens to Marginal Revenue When Output Increases. Retrieved from: http://smallbusiness.chron.com/happens-marginal-revenue-output-increases-34481.html Overly, S. (2014). Wal-Mart plans to bring its compete-on-price approach to organic food. Here’s how. Retrieved from: http://www.washingtonpost.com/business/capitalbusiness/wal-mart-plans-to-bring-its-compete-on-price-approach-to-organic-food-heres-how/2014/04/09/db1bab32-c003-11e3-b574-f8748871856a_story.html