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Competing against Wal-Mart

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Introduction

Competing against Wal-Mart Wal-Mart is a giant retailer with 8500 stores in 15 countries, with 55 different brand names. Wal-Mart is also a manufacturing, logistics, IT and supply chain driven company that has retail stores. The power of Sam Walton created strategies and policies for the world's biggest retailer cannot be underestimated, but companies can successfully compete against it. Competitive advantage through differentiation Grocery stores and general merchandise stores need to realign their business plans. ...read more.

Middle

Wal-Mart requires only 10% footage area of its stores and warehouse for storing for inventory, where as competitors require 30 to 35% footage area. New firms and stores can replicate this model for managing inventory, distribution and take the advantage of specialized trade associations to create of group of local companies. And use the association as a platform to benchmark and share best practices. Market Segmentation Market segmentation is a fundamental aspect of Wal-Mart success. Wal-Mart has entered into an era of ?store-of-the-community customization? an attempt to capture a large market share in specific segments. ...read more.

Conclusion

It's a strategy that new firms can adopt which will help to earn higher returns. SWOT Analysis: Retailers should re-define the function they serve. One way to compete with giant retailer like Wal-Mart is to offer goods and services that Wal-Mart does not provide. The key factor to compete and survive against Wal-Mart is to focus on business into a function where retailer can control strengths in the local market by implementing sustainable techniques. Strengths: Effective supply chain management, Targeted marketing, Innovative products and technology. Weakness: Labor laws, Public image. Opportunity: Globalization, E-business, Purchasing power. Threats: Anti competitive practices, Competitors, International laws. ...read more.

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