Question: A Case In Competitive Strategy: Walmart And Target These Questions Are Intended For Open Discussion And Expression Of Differences Of Opinion. Here We Have An Outline Of Some Thoughts On These Competitive Issues, Combined With Some Of The Most Recent News Reports. 1. Most Would Argue That Walmart Is A Cost Leader Because Of Its Focus On Low Prices. Its …

Question: A Case In Competitive Strategy: Walmart And Target These Questions Are Intended For Open Discussion And Expression Of Differences Of Opinion. Here We Have An Outline Of Some Thoughts On These Competitive Issues, Combined With Some Of The Most Recent News Reports. 1. Most Would Argue That Walmart Is A Cost Leader Because Of Its Focus On Low Prices. Its …

A Case in Competitive Strategy: Walmart and Target These questions are intended for open discussion and expression of differe

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A Case in Competitive Strategy: Walmart and Target These questions are intended for open discussion and expression of differences of opinion. Here we have an outline of some thoughts on these competitive issues, combined with some of the most recent news reports. 1. Most would argue that Walmart is a cost leader because of its focus on low prices. Its operating efficien- cies and persistent pursuit of low costs from its suppliers help Walmart to achieve these low prices; the slogan says it all about that firm, “Save Money, Live Better.” Target also values low prices, but competes somewhat differently. As the company website states, “our mission is … delivering outstanding value, continuous innovation and exceptional guest expe- riences by consistently fulfilling our Expect More, Pay Less® brand promise.” Moreover, the Target financial report states that, for Target, the competitive focus is to offer customers “both everyday essen- tials and fashionable, differentiated merchandise at discounted prices.” These statements point to a dif- ferentiated firm, even though low price is an element of the competition. Another difference is that Target’s advertising budget is somewhat larger, at 2% of sales in 2017, relative to half of 1% for Walmart in the same period. At the time of this writing, June 2017, Walmart has had a stock price increase of 10% over July 2016, while Target’s stock price declined by a third in the same period. Why? While both retailers have suffered a loss in “walk-in” sales, Walmart has been very successful in recent years in online sales. In the first quarter of 2017, Walmart’s online sales increased by an impressive 63%.