Competitive Strategies and Government Policies Paper on...

Competitive Strategies and Government Policies Paper on Wal-Mart ECO/365 University of Phoenix Week 5, Learning Team Assignment March 18, 2013 Management has recognized the effect of changes in the real-world competitive environment and government policies on other industries and anticipates similar events occurring in their industry, so they ask you for a report considering the following points. Write 1,400 – 1,750-word paper of no more than in which you describe how each of the following are or potentially will affect your industry or one with which you are familiar: †¢ New companies entering the market, mergers, and globalization, on pricing and the sustainability of profits: Identify the type of merger activity in your†¦show more content†¦Wal-Mart continues to expand their brand name to maintain the iron fist hold on the market they currently dominate. These generic brands allow Wal-Mart to cut prices and offer many goods lower than their competitors. Wal-Mart has announced expanding its generic line by approximately 80 new products, boasting that the products are an average of 40% lower than popular brands. Wal-Mart like other large retailers has to abide to tax laws and regulation set in place by the government. Wal-Mart like any other company has regulations to follow such as the antitrust laws. Antitrust policy is the government’s policy toward the competitive process (). Where the government may intervene is say if Wal-Mart was merging with a company, and it was taking a complete strong hold on the market giving it t he ability to fluctuate prices as high as may want to. Still being able to retain consumers even at such a high price and they can do nothing about it. Antitrust regulation can prevent a company like Wal-Mart from doing so. The specific law is the Sherman Antitrust Act of 1890 designed to regulate the competitive process. Wal-Mart biggest externality from opening a store in a small town can undermine the town centers and replace them with commercial sprawl on the outskirts of these towns (). If these externalities are a reason to limit Wal-Mart’s aggressive pricing policies is a debatable question (). An externality is theShow MoreRelatedWal Mart s Corporate Administration1709 Words   |  7 PagesIntroduction:- Wal-Mart is one of the biggest retail location in the United States, and it is bigger than some other retail network on the planet. At present Wal-Mart works in excess of 4,150 retail offices all inclusive. Likewise, the organization is the prevailing retail locatio n in Canada, Mexico, and the United Kingdom . 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