Competitor Analyses between Wal-Mart and Target
Competitor Analyses between Wal-Mart and Target
Wal-mart the biggest privately owned company has the most influential Chief Executive Officers (consumer goods club, 2010). Just before, Duke got appointed as the CEO Wal-mart announced a huge fanfare project. This project aimed at freshening up the stores and making them an excellent place to shop. The stores looked cleaner and brighter, and the logos yellow and got put in place creating a combination of warm colors. However, this glory did not last for long since customers begun buying fewer stuff. Furthermore, the stores continued to receive fewer buyers causing income decline. Nevertheless, CEO Duke intervened and rescued Wal-mart by restoring many products that had been dropped including Wisk.
Target Corporation got founded by George Dayton, one of the top general merchandise retailers in US. The company has a mix of stylish products and daily essentials at low prices provide to it a peculiar strategy. Furthermore, it is one of corporations to concurrently incorporate price leadership and delineation as its strategic business representation. The corporation also utilizes its huge size to achieve economies of scale in a bid to compete with retailing giants such as Wal-mart, “a main competitor.”
Target has its main strength on utilization of their huge sizes to achieve economies of scale, as well as mixing stylish products and capturing many customers. Its price leadership and incorporation and differentiation mark its strength in strategic business model. On the other hand, Target’s reduced labor costs have lowered the product price allowing it to offer low priced goods while still maintaining a profit margin. In addition, the company’s profit targets have been bent by lowering product cost.
Wal-mart’s CEO’s have helped in boosting its merchandize power over other corporations. Additionally, its strategic plans for enhancing its market share have proved its strength in the market. However, Wal-mart has some weaknesses on its maintenance of customer’s interests and priorities. Sources argue that Wal-mart gets challenged by its target market sustainability. Target Corporation has more strength and can respond best to its competitor’s action.
Conversely, Target Company has been able to understand the consumer’s needs and desires; since it has endeavored to provide daily essentials at low prices to its consumers. As if not enough Target company has got the ability to be more successful in the future because it still has the potential to expand in other nations.,
References:
Heydt A. von der (2010) Strategic and operational approach of Wal-mart’s CEO Mike Duke (The consumer goods club) Retrieved on 12/5/12 from https://www.consumergoodsclub.com/cgc-o
Gysberg N, Lee K and Cline R() The Target corporation: Strategic analysis Retrieved on 12/5/12 from http://www.slideshare.net/Jack78/target-corporation-report
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