A Target on Wal-Mart

Wal-Mart is the world's largest company, and Wal-Mart has one million people worldwide, revenues in 2009 exceeded $ 450 million. Its business is dominated by the United States, but it is beginning to expand to other countries as well. According to the annual report of Wal-Mart, Wal-Mart has more than 8,400 retail stores under 55 different banners in 15 countries. Walmart's market structure is oligopolistic, and this research analyzes Wal-Mart's current market situation. Whether there are problems with interdependence with other companies and competitors of Wal-Mart, and new mergers, acquisitions, antitrust laws.

Target, Wal-Mart, Costco's business model has many similarities and differences. The target and Wal-Mart's business strategy are more similar, as they offer many of the same products. The main difference is that Wal-Mart is aiming to provide the lowest price possible, whereas the target is designed to provide a better shopping experience. Their target is hoped to be kept at a higher level; their ideal client is a university educated woman seeking a high quality shopping experience. Costco targets customers of the same type, but its business model is different from the target. Costco is based on a membership system, accounting for the majority of its total revenue, and offers customers the value of bulk purchase discounted products.

One of Wal-Mart's biggest competitors is Target. Although it is a discount store market, Target differs from Wal-Mart in several respects. There is no welcome staff on the target, and there is no product like Wal-Mart. For example, fruits and vegetables that Wal-Mart Super Mall began to carry. The target did not even have universal brand clothes that can be found in Wal-Mart. Instead, they try to attract customers by having several brand names, and limit these brands to target customers. Targets currently offer brands such as Sonia Kashuk and Michael Graves and new materials such as Isaac Mizrahi, Liz Lange and Amy Coe are also planned to be available soon. The target believes that this difference brings a competitive advantage in all discount stores. As their slogan 'I'm looking for more, reducing salaries', Target wants to expect customers a higher quality item while paying customers a discount store price.

The target is Wal-Mart's biggest competitor. The goal is to resume price matching plan for the abolition in 2002. The target company recently tested the price matching plan at the store. Under the plan, Target will match the competitor's price of the same item. Wal-Mart currently offers a similar pricing option to match the competitor's key value product advertising price and stores more strategies. When Target succeeds in launching programs and expanding programs in the United States, existing market share of Wal-Mart will decrease (DATAMONITOR: Wal-Mart Stores, Inc, 2009).