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Submitted By sweetpea42003
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Market Trends Paper
ECO 365
University of Phoenix
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Introduction When one dreams of opening a successful business, they hope to create one that is profitable, yet fair in the market place in which they compete. Every businessperson wants his or her company to be the best and wants to create an empire that surpasses all expectations. Unfortunately, they eliminate all competitors seeking their own success. One such company is the mega-retailer, Wal-Mart.
Market Structure The monopolistic structure of Wal-Mart will have a negative impact in the future. Wal-Mart is the nation’s largest civilian employer, but their aggressive overtaking of their competitors and their sales may hinder their retail business. According to the Food & Water Journal (2000), Wal-Mart is being considered a monopolistic beast. The German government has been watching Wal-Mart closely since the corporation came crashing into the German economy two years ago by buying up two of its larger supermarket chains. The German government launched an investigation and found that Wal-Mart knew supermarket chains were illegally selling below their wholesale costs, with the goal being, to bleed their opponents dry and then revel without competition from there on out. Although, Wal-Mart enjoys continued success, some governments are questioning their marketing tactics. Wal-Mart’s disregard of the benefits to the consumer seems to be marginal and temporary and the damage to the competition, though illegal, obstruction of small- and medium sized companies is very significant. The negative impact will hit other discount giants like Kmart and JC Penney, because Wal-Mart has more purchasing power and operates more efficiently. In the end, there will be fewer retail jobs for the same amount of sales.

Impact of New Companies entering the Market Currently there

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