Competitors and tactial actions (CH 5)

Walmart's main competitors are Target and Costco. Walmart uses a tactical response of offering large scaled price cuts on products to defer the competition. The holidays and peak seasons are especially targeted for large price reductions.

Business-Level Strategy

Walmart is the largest retail chain in the world. The company achieve a high status by employing a cost leadership strategy. Walmart provides good quality items for an affordable price. By forming a tight relationship with suppliers, Walmart is able to offer greats deals to their customers, which has lead to their success over other retailers.

Walmart's Internal Environment

Walmart's low cost strategy and high level of customer loyalty provides a barrier of entry for competitors. Their strong ties with supplier and efficient use of technologies are among some of Walmart's strengths. Walmart's weakness seems to be their inability to adequately pay their employees, which has led to many lawsuits. The majority of employees are paid below the Federal poverty line.