Business Strategies Attached you will find 2 posts by 2 different students. You need to respond to each separately with your opinion on what they wrote abo
Attached you will find 2 posts by 2 different students. You need to respond to each separately with your opinion on what they wrote about (give them feedback) Also extend your discussion, whatever you would like to add to what they wrote about (make sure add references)
No wikipedia or blogs accepted
Student 1: Darrick Mitchell
The desire and capacity to acquire certain things are described as demand, while supply is defined as the entire number of commodities that providers are willing to bring to market and offer at a certain price. In this scenario, we’ll look at the demand and supply of a corporation named Walmart, which has entered the retail market. It is regarded as one of the top corporations on the planet (Allgrunn, 2016).
The determinants of demand for Walmart are income, substitute price, preference/taste. When the consumer’s income is high, they purchase more goods, and substitutes are less and not related due to less competition in the retail chain category. Walmart is recognized for selling low-cost goods, which has aided the company’s growth and expansion. Another element that has boosted demand for Wal-Mart items is a lack of competition; the firm is recognized for its retail takeover power. In 1997, Wal-Mart made its first purchase, purchasing Mohr-Value shops. The primary goal of this purchase is to remove competitors in order to gain market domination (Peters, 2012).
The nature of the product has an impact on the consumer’s reactivity since it is a need for survival. The demand for a product is unaffected by price changes. Consumer responsiveness to pricing may be influenced by a variety of factors, including income level (Allgrunn, 2016). High-income individuals are not affected by increases in the pricing of products and services. Poor individuals, on the other hand, react to changes in pricing (Peters, 2012).
Price elasticity of demand is an economic indicator that depicts the relationship between percentage changes in the quantity demanded of particular commodities and percentage changes in the pricing of those items over time. The price of various replacements is one of the elements that influence the price of PED. Walmart makes certain that it offers the goods at a lower price than the competition; the reduced pricing will cause the rivals to react and purchase from Walmart locations (Allgrunn, 2016).
In the future, Walmart aims to increase the demand for their product because their mission is to serve humanity with their low price structure. With the increasing inflation rate and pandemic situation, Walmart’s low-cost products have increased in the sale of Walmart (Peters, 2012). Walmart is a recession-proof business that shows its success in the recent recession. For example, Income elasticities show that Target’s revenues are more vulnerable to fluctuations in income levels than Walmart’s because shopping at Target is considered a luxury, but shopping at Walmart is considered more of a need (Allgrunn, 2016).
Allgrunn, M., & Weinandt, M. (2016). Is shopping at Walmart an inferior good? Evidence from 1997-2010. The Journal of Applied Business and Economics, 18(1), 77.
Peters, D. A., & McKay, D. R. (2012). Are you Holt Renfrew or Walmart? Applied economics inpricing plastic surgery. The Canadian Journal of Plastic Surgery, 20(1), 51.
Student 2: Vivien King
Hi, Colleagues and Professor Fitzgerald!
The determinants of the direction of market demand and the elasticity of demand for the product are constantly changing. Our Professor mentioned this many times in our live collaborative interaction this week. According to him, the market has ever molded by its rule. It will juggle strategic accession. Therefore, it needs refined control to decide. Manral (2010) suggested that staying in the mainstream competition requires prompt review. The change of industrial demand structure pushes a corporation’s competitive advantage.
J. B. Hunt transport did not find it weak in their products or service. From the very beginning, the head of this company had extensive experience and interacted with mixed services and goods. Even in the exhilarating pandemic (cited in the previous postings), equipment purchase continues. Indeed, the market has high demands in this industry. Even in the past year’s holidays J. B. Hunt, the jams on the West Coast much amplified that will continue on this year 2022. If we look at the source of congestion, it comes from scarcity. It is a condition that comes from all aspects of the different sides of the resource (Smith, 2021). If they just let the problem end, the availability of services will be less consumed and become an inelastic motion.
This company saw the existence determinant. It is a flaw of equipment and the workforce. Together, it also includes individual safety from the COVID-19. The plague of COVID-19 is worsening the crisis. First, the company of J.B. Hunt offers a broad commitment to safety. They encourage the drivers to be serious about cultivating a society where safety comes first. They also guarantee that they will provide well-trained drivers and innovative safety technology for the trucks. Since the drivers are one of the causes of the crisis, a whole team is committed to driver acquisition, keeping, and practicum (J.B. Hunt, 2021).
They also adjust to unique circumstances applying promises they construct to their customers. They pursue business continuity and disaster recovery (BCDR). It plays a vital role in sustainability. The BCDR helps reach effective communication by sharing information for the whole business fellows. They adapted tailored shipping goods equipped with modern and efficient carrier answers. The claims to reinforce sufferable supply chains give two proprietary means: the carbon calculator CLEAN Transport™ and the Carbon Diet service (JBHunt.com, 2020). Nature influences the elasticity of demand.
These two practices advise sustaining the supply chain to the customer by lowering their carbon emissions while also lessening the fee. It further gives a five-step process: 1) understand the carbon impression as a starting end, 2) miles elimination, 3) payload increase, 4) energy-efficient modes conversion, and 5) SmartWay® transports efficient benefit. All the struggle and change they have made bearing fruit as their revenue increased by 5 percent. COVID-19 disruption does not hinder outcomes (JBHunt.com, 2020). Elastic demand is a factor that replaces the available commodity. The greater number of replacements, the more elastic it becomes. It allows a sharing of total gains.
J.B. Hunt (2021). The road ahead for your fleet | j.b. hunt. Retrieved from https://www.jbhunt.com/blog/2021/02/11/the-road-ahead-for-your-fleet.html.
J.B. Hunt (2020). 2020 Sustainability report. Retrieved from https://www.jbhunt.com/content/dam/jbhunt/jbh/corporate-responsibility/documents/2020_Sustainability_Report.pdf.
Manral, L. (2010). Towards a theory of endogenous market structure in strategy: Exploring the endogeneity of demand-side determinants of firm investment strategy and market structure. Journal of Strategy and Management, 3(4), 352-373. http://0624jkjdj.mp01.y.http.dx.doi.org.prx-keiser.lirn.net/10.1108/17554251011092719.
Smith, J. (2021). J.B. hunt expects strong freight demand to extend into 2022. The Wall Street Journal. Retrieved from https://www.wsj.com/articles/j-b-hunt-expects-strong-freight-demand-to-extend-into-2022-11634333896?cx_testId=3&cx_testVariant=cx_2&cx_artPos=1&mod=WTRN#cxrecs_s.