Wal-Mart, Tesco and Kroger

Wal-Mart, Tesco and Kroger

Table of Contents

There are different retail companies in the United States including Wal-Mart, Tesco and Kroger. Wal- Mart is a global retail firm that operates chains of discounted department stores and warehouse stores. The company is the third biggest firm globally according to fortune 500 magazine. The company offers grocery and non grocery products to customers. The company employs cost leadership strategy. The company offers grocery and non grocery products to consumers cheaply than its rivals. Wal- Mart is aimed at changing the lives of its customers by enabling them to save through low prices. The tactics have made Wal- Mart profitable and a leader in the industry.

Tesco is an international company that offers grocery to customers. The company is located, in Cheshunt in the United Kingdom., It is the third biggest retailer in the world in terms of revenue after Walmart and Carrefour. It is the second biggest in terms of profit after Walmart (Krafft & Mantrala, 2006). Tesco entered in the United States in 2007. The company opened convinces stores known as Fresh and Easy in Arizona, California and Nevada. Tesco has implemented the cost leadership strategy. The company concentrates on creating internal efficiencies that will aid it withstand pressure from the external environment. The company has managed its supply chain effectively and efficiently to satisfy customers. It has eliminated middlemen and hence lowered prices. Tesco has also implemented differentiation strategy. It has differentiated its products and services from competitors, and this has enabled it to survive in the market. Tesco competes with its competitors by offering the finest quality products. The tactics are effective as Tesco has performed well in UK, USA and other countries. The company has increased its customers and profit (Krafft & Mantrala, 2006).

Lastly, Kroger is a retail company found in Cincinnati, in Ohio., The Company is the biggest grocery store chain and second biggest in terms of revenue in the country. Kroger has employed the cost leadership strategy to remain competitive in the industry. The firm attains cost leadership via economies of scale and scope. It also attains cost leadership via low cost distribution of products, reduction in research cost and efficient production. Also, the company has employed differentiation strategy. The company had differentiated itself from other companies by performing well in product quality, product variety and consumer services. The strategies have proved effective as Kroger has increased its profit and remained competitive (Krafft & Mantrala, 2006).

Reference

Krafft, M., & Mantrala, M. K. (2006).Retailing in the 21st century. New York: Springer

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