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Factors Influencing Demand and Supply of Walmart Inc


The sole purpose of setting up a business is to provide goods and services to society at a profitable rate. Businesses ownership can be on an individual level/privately owned or government-owned. In the case of the government-initialized businesses, the citizens are the core customers. The public Corporation is a product of the legal actions of the government formed by the legislative bodies. The objective of the Public Corporation is to offer services to the public at very affordable rates while still making recommendable profits (Feigenbaum, 2017). The operations and management of the public Corporation lie under the decisions and choices of a board of directors. In addition, the public corporations stay financially independent after their initialization and establishment yet accountable to the state legal body. The employees’ system remains managed by the Public Corporation without any government interference.


Walmart Inc. is a public Corporation that deals with both sale of commodities to the public in relatively small amounts and the sale of goods in large quantities at discounts. The public can access a wide range of merchandise at discounted prices when benefiting from retail services. For the case of wholesale private owned businesses, purchase commodities in bulk then proceed to resell the goods in small quantities at affordable prices. Walmart Inc. provides daily needed items and services at much-discounted prices (Cohan, 2020). The public accesses the commodities and services offered by Walmart Inc. from their supercenters, where the market size is largest. In addition, self-services in relative supermarkets are achievable. Hypermarkets come as more extensive retail stores than Supermarkets, where various goods come sold under a single roof. The buyers take away goods upon payment in cash and carry system of Walmart Inc. Consumers save a considerable amount of money while purchasing the low-priced services and goods provided on a wholesale range in the warehouse clubs owned by Walmart Inc.


The economy stays driven by the trend in demand and supply of resources. The law that governs how the buyers and sellers relate, considering the help on the table, keeps the economy afloat. The law of demand is contributed by the buyers’ wiliness to purchase, whereby, as the cost increases, the market for a resource diminishes (Perkis, 2021). Whereas for the law of supply, the producers and suppliers of the resources stay motivated to give more of their products when prices inflate. All of the choices made by the buyers and suppliers concerning the law of demand and the rule of supply respectively serve to achieve economic stability and profitability on their side.

Various factors influence the supply and demand either positively or negatively. The key and repetitive observation is that supply and demand rise and fall dependent on each other. The dominant factor influencing supply and demand is the irregular rise and dropping of the commodities and services on sale. The market of a good or service stays negatively affected by an unregulated price increase; in turn, the consumers lose the immediate need, leading to reduced demand for the commodities (Balleerm et al., 2020). The overly priced things have their prices reduced by regulating the production cost. The regulation of the production cost leads to an affordable final product causing a sudden increase in demand for the good. With increased demand, the production team strives to adapt optimum systems by supplying just enough commodities to meet the high demand rate.

Competition in the marketplace promotes better quality goods and service providers as businesses strive to obtain and keep customers. Therefore, with worthy alternatives offering similar but better consumer-oriented commodities, an organization’s supply and demand vary (Ali et al., 2018). The typical scenario is when another emerging organization offers goods and services to the consumers at friendly terms and prices—the demand and supply rise when an organization provides better quality and low-priced commodities. However, the businesses that offer the same goods and services without betterment incur losses as the demand and supply in a market system diminishes drastically.

The financial stability and status of the consumers influence the direction of drift in a business setup. The buyers’ employment status directly contributes to the number of financial muscles needed to access essential commodities. Job opportunities cause consumers to have a good income, resulting in improved purchasing ability in the marketplace (Gopinath, 2020). The customers purchase items and access services when they have financial stability. In addition, when the credit level is high, the buying ability is positively influenced because the amount of loans availed by financial bodies is increased. Therefore, with access to sufficient income and credit, the demand for commodities goes up and the supply to the market. However, when there is low income and credit level, consumers will have low purchase power, leading to a decrease in the demand and supply of goods and services required.

The socio-economic and religious beliefs lead to widespread indulgence in certain activities during the current seasons. The most common seasons influencing the demand and supply of specific commodities include the national celebrations and the start and end of year celebrations, where many individuals participate. Weather patterns contribute to the market and collection of items required to better living conditions during unstable environmental conditions. For instance, during the end-of-year Christmas celebration, massive gifts purchase also transpires the purchase of warm clothing results from the shallow temperatures in the winter season (Kharfan, Chan & Firdolas, 2021). In conclusion, cultural seasons and weather patterns influence the demand for certain goods and services. Therefore, increased demand and supply of the commodities and services rise to meet the need for goods in each specific season. However, when the season elapses, the market of season-based items drastically falls, leading to a reduction in supply.

The media and societal perception influence the trends and preferences of goods and services. Through social media and advertisement platforms, influential individuals in society fuel the change in perception and desire to accommodate various goods and services (Jawaid & Karim, 2021). The targeted consumers tend to adopt the new trends in society for the desire for status. There is a high demand for commodities and services considered fashionable in the present times; this results in an increased supply for customer satisfaction; when a new trend overwhelms the market, the earlier produced products lose taste to the consumers, leading to low demand and supply in avoidance of losses.

The available potential buyers determine the size of the market present for goods and services. When the consumers are high in numbers, the demand for commodities directly increases and the supply adjusted to rising, meeting the needs of the consumers (Hobbs, 2020). For a relatively small consumer market, the demand remains low, whereas the supply tends to reduce relative to low numbers of consumers. The economy fosters a large consumer market, and it deteriorates with supply and demand when the consumer market is small.


Ali, S. M., Rahman, M. H., Tumpa, T. J., Rifat, A. A. M., & Paul, S. K. (2018). Examining price and service competition among retailers in a supply chain under potential demand disruption. Journal of Retailing and Consumer Services40, 40-47.

Balleer, A., Link, S., Menkhoff, M., & Zorn, P. (2020). Demand or supply? Price adjustment during the Covid-19 pandemic.

Cohan, P. S. (2020). Groceries. In Goliath Strikes Back (pp. 71-87). Apress, Berkeley, CA.

Feigenbaum, H. B. (2017). The Politics of Public Enterprise. Princeton University Press.

Gopinath, G. (2020). Limiting the economic fallout of the coronavirus with primarily targeted policies. Mitigating the COVID financial crisis: Act fast and do whatever it takes, 41-48.

Hobbs, J. E. (2020). Food supply chains during the COVID‐19 pandemic. Canadian Journal of Agricultural Economics/Revue canadienne d’agroeconomie68(2), 171-176.

Jawaid, M. H., & Karim, E. (2021). Factors Affecting Consumer Buying Behavior in E-Commerce Business during Outbreak of Covid-19: A Case Study on Top E-Commerce Websites.

Kharfan, M., Chan, V. W. K., & Firdolas Efendigil, T. (2021). A data-driven forecasting approach for newly launched seasonal products by leveraging machine-learning strategies. Annals of Operations Research303(1), 159-174.

Perkis, D. F. (2021). The Science of Supply and Demand. Page One Economics®.


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