Wal-mart isn’t “putting” other stores out of business. The businesses are putting themselves out of business. Wal-mart comes into town and the first thing these mom and pop shops and small chains start trying to do is beat Wal-mart at their own game. These shops start a price war that they are never going to win. These smaller companies are not going to beat Wal-mart on price. Wal-mart is cutting costs all the way back to raw materials, not just at the retail level. You don’t beat an enemy by continuously slaughtering your own troops against there most powerful strong hold. Like Achilles, even the great Wal-mart has weaknesses. If companies would capitalize on those weaknesses and stop battling with price they would have much better chances at survival and even possibly come off triumphant.
5 comments:
I agree 100% with you. I extremely think Wal-Mart is putting more of every other store's business in the corners because their prices are so low. I mean, Wal-Mart has the lowest prices in the country. so, why don't the other stores just lower their prices? They're trying so hard to sell their products and grocreys, that they don't bother to lower their prices! The owners of other stores are just stupid if they can't notice this! I agree 100 percent with every one of you who posted a comment on this. oh, and by the way, check out my blog! I've got some great sites! I'm located at jackhahhnon.blogspot.com.
Mom and pop survival is not created by just simply
lowering prices. Everyone on this blog, besides the person posting, doesn't get that point. No mom and pop is goingto be able to match Wal-Mart's prices on the majority of items in a typical store. However; they can create niches and by doing so draw away customers that are tired of the lack of personalization at the big box stores.
Also, everyone is sure quick to point out that one day
Wal-Mart will be out of business. Tell me, where are you all looking at in gauging this doomsday conclusion? Please tell me that your'e not going to cite the failures of once powerful retailers such as Sears and Kmart. Wal-Mart does have it share of problems. Lawsuits are filed 6,000 times annually against them.
Mom and Pop stores will not survive if they try to compete with Walmart's prices. Walmart's success lies in having the lowest prices, however, there are other areas in the market that are left wide open. For example, Walmart does not carry a wide selection of products. Example: I like a certain flavor of spaghetti sauce and Walmart doesn't carry it. Walmart's hardware department is pretty limited as well.
A savvy Mom and Pop store will find a core strategy that Walmart is not and this will be the area that they need to be the best in. They can be the place where people go when Walmart doesn't have what they need.
Bottom line: Walmart is not all powerful and businesses can still exist in their presence.
I think there's some pretty good strategic thinking here. Wal-Mart has obe basic strategy. They are the best at cutting costs. You can either do them one better (unlikely) or offer customers something different that they can't get at Wal-Mart.
See http://harryjoiner.typepad.com/proven_ways/2004/09/retail_giant_re.html
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