Wal-Mart vs Target: Image Difference and Competitive Responses



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Code : COM0098

Year :
2005

Industry : Retailing

Region : USA

Teaching Note: Available

Structured Assignment : Not Available

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Wal-Mart and Target: Company Profiles Wal-Mart started in the year 1962 when the first Wal-Mart store was opened in Arkansas. In 1970 the company went public by issuing shares. In the same year, Wal-Mart opened 185 stores andmade sales of $44 million. By 1980,Wal-Mart had 270 stores and sales of $1.2 billion. In 1987, it had 1198 stores with sales of $15.9 billion. It opened its first Supercenter in 1988. By 1996 the company's sales touched $100 billion. Wal-Mart is known as 'The Low Price King' store. Its lowcost strategy gives Wal-Mart competitive advantage over others...

Wal-Mart vs. Target: Image Differences Wal-Mart started as a discount store offering products at lowprices. The stores multiplied in the 1960s and by the 1970s Wal-Mart became the biggest chain of discount stores in the US. Sam Walton, the founder of Wal-Mart, positioned it as a discount store offering products at low prices. Wal-Mart was known for its 'Every day low prices'. For years Wal-Mart advertised rarely as their low price strategy worked with the masses. There were few ads like the yellow smiley face character...

Wal-Mart vs. Target: Competitive Responses Wal-Mart and Target competed against each other on prices of commodity items, image and customer groups. Although Targetwas the fifth-largest retailer in the US, it could not achieve the same sales figure that Wal-Mart did. Moreover, Target's image of being more upscale was a disadvantage. The perception of the general masses was that Target was more expensive than its chief rival Wal-Mart...

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