WalMart Joins Amazon in Squeezing Retail Rivals Article Discussion
Part 1. Based on the article Wal-Mart Joins Amazon in Squeezing Retail Rivals i attacked in files below.. answer 2 questions below: (each atleast 150words)
1.If you consider Walmart to be a benefit leader in online sales, why might this move into online sales cause others to make strategic moves to enhance their cost leadership? Or their benefit leadership?
2. How would you argue that this strategic move by Walmart is a focus strategy?
Part2: Make 2 replies for 2 discussions below (each one atleast 150words).. please provide charts, pictures, sources if necessary
Reply to Maria:
Question: Strategically, why is Verizon Wireless increasing prices? (Think about price elasticity of demand.)
Verizon is raising its prices due the large amount of customer it has that is consuming its data. Verizon and AT&T takes up more than two-thirds of the market, this means that it has an abundance of consumers that other smaller companies cannot compete for (Knutson, 2016). They are not afraid of their competitors as much due to this loyalty, so they are able to raise their prices for extra revenue. They are adding extra features, such as rollover data, but the company does not view it as a price increase, because consumers use so much of their data. Verizon has raised its prices just high enough for their to be a generation of revenue, but not enough for consumers to leave their company for the rivals.
Knutson, R. (2016, July 06). Verizon to Raise Monthly Wireless Plans by up to $10 a Month. Retrieved April 13, 2019, from https://www.wsj.com/articles/verizon-to-raise-mont
Reply to Maria:
Question: What is the effect of the willingness of subscribers to switch from Verizon Wireless and AT&T to lower-cost wireless plans on pricing by Verizon and AT&T? (Think about prices and cross-price elasticities of demand.)
Since cross-price elasticities of demand is the increase in demand of one product due to the change of price in another product. In this case, the subscribers may switch to a smaller provider with better prices due to the price increase of Verizon and AT&Ts plan. These types of subscribers will not represent a large portion, since the two companies are still the top companies in the mobile industry. Since the company is providing more services for their customers, I believe many will not mind the price increase with the increase of benefits. As long as Verzion and AT&T begins to provide services that smaller rivals cannot provide, I believe the two companies are keep their market shares while increasing the prices.
Knutson, R. (2016, July 06). Verizon to Raise Monthly Wireless Plans by up to $10 a Month. Retrieved April 13, 2019, from https://www.wsj.com/articles/verizon-to-raise-mont
“0.
Discount Code: 0
: +1 0 0-0
0..
