During the crisis of COVID-19, Walmart emerged as quite the winner. They were able to showcase their flexible e-commerce. They also arranged successfully for no-contact pickups, as stores like Costco, usually quite beloved, found it difficult to satisfy demand for home deliveries. Costco offered no contact-free pickups or any pickups at all, while customers found it difficult ordering from them online. Using determinants of both price elasticities of demand and supply, what might explain Walmart’s success?
Answer - The success of Walmart denotes that the elasticity of demand for walmart is not elastic. This is why it did not decrease in the time of Pandemic. The demand for Walmart is inelastic. The Walmart was quickly able to ajdust its supply as per the demand of the public with greater convinience ,no contact pickup and deliveries. Hence the supply was elastic , due to which walmart was quickly able to adjust its supply. Both these factors helped walmart to gain success
Get Answers For Free
Most questions answered within 1 hours.