There are winners and losers in this situation. I think Wal-Mart shareholders and customers benefit the most from the company. The company gives its shareholders good returns on their investment and its customers get products at low prices and convenience, by having almost every product they need at one store, especially Wal-Mart supercenter. Customers save money by not having to drive to many different stores, in order to get different products. Although many might argue that Wal-Mart is misleading its customers by using the opening price point, I believe that overall Wal-Mart prices are lower than their competitor’s prices.
Wal-Mart’s sales were growing, and that meant that Target’s sales would go down since consumers preferred Wal-Mart for Target. The inability of Target’s managers to identify a solution to the problem of dropping sales and develop a viable course of action also affected Target’s performance. Another micro environmental factor was the thriftiness of customers all over America, which endeared them to Wal-Mart. The impatience of Target’s shareholders and the pressure they exerted on the company’s board to deliver was also a major factor. The marketing strategies that were adopted by the management also failed to turn things around.
Wal-Mart’s sales were growing, and that meant that Target’s sales would go down since consumers preferred Wal-Mart for Target. The inability of Target’s managers to identify a solution to the problem of dropping sales and develop a viable course of action also affected Target’s performance. Another micro environmental factor was the thriftiness of customers all over America, which endeared them to Wal-Mart. The impatience of Target’s shareholders and the pressure they exerted on the company’s board to deliver was also a major factor. The marketing strategies that were adopted by the management also failed to turn things around.
Old Navy and IKEA are both accessible stores that can be found across North America and online. Both companies make eye-appealing products for the whole family, but do not age well. For example, IKEA pre arranges its products to lessen the thought of assembling products. When products become less of a hassle for the buyers, they tend not to look at the cons of the products. IKEA does this buy distracting its customers by making their products colourful, stylish, and cheaper than other competitors’ products.
The location of Dollar General is more convenient most of the time than Wal-Mart. Another point mentioned that Dollar general could open stores in small areas that are not suitable for Wal-Mart to enter. In conclusion regards this question, Wal-Mart competes in selection and price; however, Dollar General competes in price and convenience. What recommendations would you provide to Dollar regarding its strategic alternatives? - Dollar General should pay more attention to their existing store by doing some renovations, layout format is outdated.
In addition, the cost associated with trendy clothes would not be profitable for Wal-mart. Wal-mart shoppers are looking for a bargain when they go shopping at their stores. They also buy their merchandise in bulk which is geared towards lower price as oppose to small quantities that are bought by Urban Outfitters. Urban Outfitters also price their items at a higher price which enable them to create a trendy counterculture. Sears and Wal-mart are known as big retail box stores who advertise their products in several markets.
Does one rival have a somewhat weaker strategy than the other two? • No, Costco, Sam’s, and BJ’s Wholesale do not have the highly similar strategies. All of there are different in many ways, Costco prefer to offer their customers items in bulk and reasonable prices. By doing that Costco believe they could generate more customers because they are providing more products at a discounted price so the customers would feel like they are getting more for their money. BJ’s strategy focuses on providing their shoppers more groceries and packaged goods in small portions.
How do they do it? Costco beats Walmart, not by competing on price. Instead, they offer a highly targeted and subsequently refined shopping experience. Costco is structured around its key strengths: 1) Know your customer: Costco goes after a certain type of customer: small business owners who are status conscious and who have money to spend on bargain-priced premium items like Dom Perignon champagne, luxury watches and tech gadgets. The reason why Costco decided to focus on small business owners is that they realized that these people are often some of the wealthiest people in their communities: they have successful businesses, they want to buy good stuff, but they don’t want to spend a lot of money.
It’s simple, unhealthy food is cheaper than healthy food in many cases. The solution to this is to raise the taxes on food that is unhealthy for people. To start things off, we will refer to this unhealthy food as “junk food”. One problem with junk foods is that they're low in satiation value. That is, people don't tend to feel as full when they eat them, which can lead to overeating.
Also they introduce new items and options for Americans to buy and sell. In addition, they often accept lower wages for more productivity. For example, many immigrates take jobs that average Americans would not normally do. Such as: moving lawns, house keeping, and working at fast food restaurants. This stimulates big businesses because its saves the business more money to pay someone less for their services.