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Wal-Mart Update,2011 write-up - Case Study Example

Accordingly, the first part of this discussion revolves around the definition and understanding of strategic groups. Figure 1.0, available at the bottom of this brief analysis, summarizes the strategic group situation that Wal-Mart currently competes within. As a function of better understanding the level to which the determinant factors of this strategic grouping takes place, this author has defined the X and Y axis of the graph provided as product differentiation and price. Due to the fact that what the stores are able to offer and at what price seem to be the very foundation of the market’s definition of potential success, these have been determined to the most important factors. Within the figure provided, Wal-Mart of course ranks highest with regards to product differentiation and falls within a relatively low price range. Comparatively, stores such as Family Dollar and Dollar Tree offer a far lower level of product differentiation but much lower pricing than does Wal-Mart. Likewise, Wal-Mart’s main competitor within the US retail market, Target, offers a high level of product differentiation but at a relatively higher price than any of the other firms that have been analyzed. This not only acts to provide a unique twist to the retail market but also to place Wal-Mart in a situation where it must determine which direction it should best market and appeal. Due to the fact that the firm’s growth has massively slowed of late and many of the marketing practices and store differentiation

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techniques engaged upon have fallen flat, such a graph acquaints the reader with the need and necessity of the firm to plot an effective course and target this market as a means of expanding its sales well into the future. As the case study illustrated, the fact of the matter is that Wal-Mart has been facing very sluggish growth since the early 2000’s. As a function of this, the firm has sought to provide a higher level of store and product differentiation as a means of seeking to capture lost market share and re-engage with customers that might have previously been uninterested in Wal-Mart’s products or presentation of these products (Rothaermel 52). According to the case study, millions of dollars were spent as a means to upfit and clean up Wal-Mart’s image throughout the country. Similarly, a larger and larger number of stores were increased to supercenters as a means of providing an even higher level of product differentiation to the potential consumer. However, as has been noted, this strategy, although exorbitantly expensive, has failed to generate the revenue or the growth that Wal-Mart may have hoped for. Because Target represents a Wal-Mart’s strongest retail competitor within the United States, the firm has expended untold millions attempting to mirror the cleaner more upscale look and offerings that the Target brand specializes in. However, it is the belief of this reviewer that Wal-Mart should cease and desist from attempting to mirror Target’s offerings or style. Although it is always a scary decision for a firm concentrated on growth to not compete within a given market, Wal-Mart must make a very important choice. Will it choose to compete in the more upscale product offerings and appeal that Target brand offers or will it concentrate on what can only be described as Wal-Mart’


Name Date Course Section/# Wal-Mart Case Review Based upon the given case study that has been reviewed, this brief analysis will attempt to answer several question related to Wal-Mart’s growth potential and best course of strategic planning to continue to maximize its growth into the near future…
Wal-Mart Update,2011 Case write-up
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