Managerial Econ- Walmant

Walmart save money live better

Paulina Jaswiec MBA 531

Managerial Economics

Walmart

Known for its discounts- “Price Wars”

Open 1962 by Sam Walton

1980- 1 Billion in sales

1997- 100 Billion & opened it’s 1st store in Germany

Survived only 5 year- acquiring 100 millions in losses

What went wrong?

Lack of empirical lead to:

EU regulations did not let Walmart monopolize the market.

Failure to comply with EU regulations

Lack of consumers identity and interests

No international strategies= not relevant business strategy

Managerial Perspective

Underestimated Demand

Low Market Share

Price Elasticity

Monopolization Predatory Pricing

Conclusion- couldn’t keep up with other companies because they were not financially stable enough to offer discounts and suffered great profits losses