Question

I Need thoughts on the following. My company is Walmart Neighborhood Market. Cited sources also appreciated.

**I have chosen oligopolistic Market Structure.

1. Assess how the oligopolistic Market Structure impacts your chosen company's financial performance as measured by performance variables over the past three years. Support your response with data and graphs illustrating two performance variables of your choosing (e.g., sales, net income, stock price) over time.

I have chosen Revenue for one performance variable, would like further insight

2. How would possible changes in the industry's oligopolistic market structure impact your chosen company's business strategy in the future? Keep your company's current business strategy in mind in your response.

Answer 1

1) Oligopolistic Market structure impacts the company's performance becuase the competitors performance depends on the competitors. The company choosen is Walmart Neighbouring Market which has major competition from Whole Food, Trader Joe's etc. Walmart has tried to maintain its position by bringing in things, diversifying its portfolio of products to maintain the customer engagement. (Revenue is already taken up) Stock price reflects alot about how the company is performing and what the people think abot a company.

If we see the stock price of this company Walmart, we find an increasing trend. the company has not seen a downside but has been going up since . Compared to the Index (blue line), we see that walmart has outperformed and increased the gap drastically in this last few years.

This indicates that the company is performing really well and people have confidence in the company thereby letting the stock price to roar lie this. Comparing to other competitors like Whole Foods etc we can say thta Walmart is financially stronger that many other players in this league.

2)Since it an oligopolistic market structure, It can be a luring entry for any new player. Uusally in such type of market structure many segments are untapped. So this should be kept in mind while coming up with some future business strategy. The company is at present expanding by opening new outlets and they should continue. In future they should try entering other untapped market in different continents by applying aggressive inorganic growth strategies like mergers and acquisition. This way they can expand faster and enter into market which is diificult to enter other ways.