Competitive Strategies Case Study

Wal-Mart: Upgrading its Low-Price Image?

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Abstract:
Wal-Mart, the world's biggest retailer, was established in 1962. Its founder, Sam Walton had expanded Wal-Mart into a chain of discount stores, and all its stores were built on the principle of attracting customers of the lower-income group by providing a variety of products at a low price. However, by mid-2005, the market for Wal-Mart had saturated and the store witnessed its profits declining. To increase its profits, Wal-Mart started concentrating on its competitors' strategy of attracting higher income shoppers. In the past, excessive displays of discounted products emphasised Wal-Mart's discount image and that had put off the high-end consumers. But now Wal-Mart wants to build a new fashion image and upgrade its quality and style of products, to focus on the upper income customers. To upgrade its image, Wal-Mart introduced a new look to its apparel line, gave importance to advertising and conducted a fashion show, partnering with the teen magazine, Ellegirl. It also made in-house changes wherein new rack rules were enforced, and the distribution system was changed and revamped by the management.

Pedagogical Objectives:

• To discuss Wal-Mart's strategic initiatives to attract the higher-income customers while retaining its traditional customers.

Keywords : Wal-Mart, Growth, Fashion, Low-income group, Upper income shoppers, Discount stores, Marketing Strategies Case Study, Quality, Walton, Low prices, Gas prices, Competition, Product development

Contents : 
Wal-Mart’s Low Price Leadership
Problems atWal-Mart
Wal-Mart:Changing?
Wal-Mart and the Future
Wal-Mart Shoppers
Relationship between Wal-Mart sales
Wal-Mart’s strategy profile