The essay "Discussion on Loblaw and Wal-Mart" describes that the Loblaw company management can be termed as one of the most efficient in its marketing strategy. To ensure the company maximizes its profit and meet its customer’s expectation, the company management introduced very triumphant marketing and promotion strategies…
Download file to see previous pages...
To fit in market competition the Wal-Mart decided to reduce the cost of their product. This turned to great threat to the Loblaw Company (Financial post 2006). In 2006, the Loblaw Company lost completely its market to Wal-Mart stores. During this year the Loblaw reported a loss of 219 Canadian dollars due to increased competition (Ian 2007, P. 1). To counter the competition raised by Wal- Mart the company introduced new products in the market. After that Loblaw utilized the strategy of constructing large superstores in its effort to pre-empt Wal-Mart in the market. For instance, Loblaw Company limited has more than one thousand and fifty stores located in various locations in Canada such as Fortino, Loblaw and Zehrs (Marina 2010). In 2002, it constructed a large superstore with the label Real Canadian Superstore (RCSS) acting as the company’s competitive strategy. In addition to that, in 2004 the company constructed 13 stores and similarly in 2005 it was supposed to construct seven more stores. On the contrary, since 2002, Wal-Mart Company limited has not constructed any megastores apart from its “5 Sum Stores” situated in Ontario (David, David, Mark S., and Scort., 2006, p. 226). However, through utilization of adequate competitive strategies, Wal-Mart can effectively compete with Loblaw and deter entry and exits into their market arenas. The importance of entry and exit barriers and strategies that firms can use to deter entry Entry and exit barriers are significant for firms that are competing. In that case, firms such as Loblaw and Wal-Mart should develop strategies that will help them in entry deterring. Entry barriers are extremely essential because they are crucial in many cases of competition. It is thus important for company’s president’s to consider barriers to entry while assessing dominance and in their determination whether unilateral conduct might discourage new entrants from taking part in the market. Most importantly, barriers to entry might dampen, retard or nullify the usual market mechanism utilized in checking market power in terms of arrival and attraction of new rivalry. Additionally, substantial barriers to entry are essential in proving that the existence of a high level of market share translates into a superior market in abuse or monopolization of dominance cases (Turut and Ofek, 2000, p. 576). Over decades, various arguments have existed among economists on how to define entry barriers. Generally, the term refers to an obstruction that makes it extremely difficult for firms to get into a market. A hot debate has persisted on which hindrances should qualify to be termed as barriers to entry.
...Download file to see next pagesRead More
Cite this document
(“Discussion on Loblaw and Wal-Mart Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1449643-industrial-economics-discussion-on-loblaw-and-wal
(Discussion on Loblaw and Wal-Mart Essay Example | Topics and Well Written Essays - 2500 Words)
“Discussion on Loblaw and Wal-Mart Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/macro-microeconomics/1449643-industrial-economics-discussion-on-loblaw-and-wal.
9-10 Conclusion 11 Works cited 12-13 Abstract This research paper aims at reviewing the literature to contemplate the leadership and management strategies of Walmart as it is consistently ranked by Forbes as one of the top businesses operating worldwide. After discussing this American retail corporation in general, the management at Walmart will be contemplated at length to find out how effective they appear to be against myriad global challenges faced by businesses and how they serve to address the employees’ concerns and customers’ desires.
Wal-Mart Case Study 1. What threats and challenges is Wal-Mart currently facing? Wal-Mart Stores Inc. is an American multinational that runs a chain of discount department stores and warehouse stores. It is a powerful retail brand which is operating in 15 countries worldwide and is catering to millions of customers who shop in their stores around the world (Walmart Corporate, 2011).
Evaluation Essay on Wal-Mart Introduction: The Wal-Mart has shown the art of retailing. The global retail giant came up with the concept of selling mass products in a discounted rate to the customers. The main concept was to sell in high volume with low price so the volume of the profit goes high.
The family has companies in its portfolio, whose products are consumed by the British Royal family. This makes the family name synonymous to royalty. Loblaw which is one of the flagship companies of this family is currently under a very dire situation. Its initiative of Real Canadian Super Stores has been a major flop and as a result of that has caused enormous amount of loses not only for the family but also for the retail chain.
Having being established in 1962 by Sam Walton, the company has more that 8,500 stores located in 55 countries. Based on its large customer bases and wide market segment, the firm has maintained a large number of employees who stands at approximately 2 million.
On October 31, 1969 Wal-Mart was established as a corporation under the name Wal-Mart Stores, Inc. Very soon after in 1970, this was followed by the opening of Wal-Mart's business headquarters in Bentonville, Arkansas and the opening Wal-Mart's very first distribution center.
Investors consider Wal-Mart’s common shares a blue chip stock. Blue chips stocks are defined as stocks issued by a well-know company with an established record for making money and paying dividends (Teweles & Bradley & Teweles).
r clothing, toys, food, and even computers, but enabled people who otherwise might not be able to afford any extras to not only provide the essentials for their household, but also to pick up a little something here and there, whether it be jewelry, house plants, or decorative
It started out with advertising just like the other members of the industry who were using the newspapers but later changed when the results were dismal (Soderquist, 2005). It abandoned the strategy of advertising in the newspapers because
2) The following questions relate to Walmart’s market and financial performance. I recommend that you use either Walmart’s annual report or the company’s 10K report to answer the questions. To do so, go to Walmart’s website,
1 Pages(250 words)Assignment
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Discussion on Loblaw and Wal-Mart for FREE!