Wal-Mart's Price Reducing Tactics

Price reduction strategy Wal-Mart is known not only for the United States but also worldwide for extremely low-cost concessions. Currently, in the past few decades, consumers have come to realize how Wal-Mart can offer such products at such a low price, that is, at the expense of employees and why . For example, a 15-pack Kellogg mat is sold for $ 15 at the Jewel Oscco's Park Ridge website in Illinois. , Illinois, US $ 2.98 (jewelosco.com, walmart.com).

Wal-Mart's low-cost strategy includes providing expensive products that are difficult for ordinary people to purchase. Wal-Mart's price leadership is exemplary and minimizes costs through aggressive marketing strategies. Walmart could not compete with its price competitively and compete at price (Stiving, 2011). While treating Wal-Mart as a cheap brand, low-cost grocery stores maintain a steady stream of customers. Wal-Mart realizes low cost advantages for suppliers based on mass discounts. It has a timing and delivery system for suppliers that match it. The essence of the cost leadership strategy is to operate the business based on the simple environment of the store. Wal-Mart's brand recognition is like purchasing larger products on a one-stop basis.

According to Sam Walton, Wal-Mart's strategy is "always inexpensive". Wal-Mart is known as Wal-Mart Welcome, and when customers enter the store they receive a "sweet face", a big smile, and a shopping cart (Burbano 2004). Wal-Mart also offers employees who are encouraging consumers to help them enter the store. Wal-Mart's strategy is based on four pillars: cost leadership, customer orientation, logistics, and information technology (Angela da Rocha 2002). Figure 1 shows the reasons why pressure from local response and pressure from global integration help determine the corporate strategy of a company. If a company like Wal-Mart chooses a corporate strategy, what is the impact of global integration pressure or local response pressure on the overall goal?

Currently, Wal-Mart is still the world's largest retailer, according to the strategy implemented by Sam Walton. Walmart is a store that emphasizes low price and superior customer service. One of the things Wal-Mart did to maintain low prices was to carefully manage its costs. The company also works hard to find offers that can be handed to customers. Because of these strategies, customers can expect lower prices everyday without having to wait for sales to earn their money.

Wal-Mart promotes low prices. When consumers personally access Wal-Mart's Web site and stores, we can see that the price of Wal-Mart is more competitive. One advantage of Wal-Mart's low price is that it helps keep the price of other competitors in the market low. Consumers also found this store very convenient. Many places in Wal-Mart are super centers, so people can do most of their shopping on a trip. By keeping the price low, Wal-Mart helps consumers purchase more products at lower prices. This will regain consumers. However, Wal-Mart is a large-scale retailer and has a business in a completely competitive market, which may lead to a price rise. Even if sales increase, Wal-Mart can not control the price. In order to maintain market share, companies have to pay extra attention to their price. Price can not be too high or too low. If the price is too high, Wal-Mart loses customers