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Small-store strategy Essay

These aspects generated media and public uproar against Target. Media has favoured adverts of Sam Walton’s namesake company and products due to the historical background of the founder. Corporations have also tried to identify themselves with wal-mart products purely because of policies, principles and strategies that Sam Walton employed to model wal-mart from infancy to its present-day global recognition. Some of the key identity areas for corporate organizations are; trade practices, product decisions, and corporate governance.

This is the strongest standpoint that boosted wal-mart against its rival Target. In recent times, Target has employed a strategy of refraining from building public controversies and product mix, which has earned them respect and made it post better sales (Worden, Daring to be wal-mart). The following figures show how shift in Targets confrontational strategy has increased its sales in the second quarter compared to Wal-mart. There was a 6. 7% increase in stores sales of similar items. In the annual sales goal, Target posted a ratio of 4% and 6% compared to that posted by wal-mart of 3.

5% (Worden, Daring to be wal-mart). Promotional Strategy Wal-Mart like many other companies in the US has reached the level of saturation in which case, there are

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indications that the company is considering a strategy to initiate its growth by opening up smaller branches according to a report from the New York Post. According to the newspaper which cites several analysts, the newspaper records that Wal-Mart is ambitiously pursuing the project of stores as small as 20,000 feet squared which it proposes to call Neighborhood Markets.

The implication is that the smaller stores would enable Wal-Mart to reach markets situated in the urban areas according to the newspaper (MarketWatch. Wal-Mart may be a mulling small-store strategy: report). The company spokesperson, Tovar David, however declines to give a prediction of the future of the business though it is quite evident that the company is under intense pressure to develop a promotional strategy (MarketWatch. Wal-Mart may be a mulling small-store strategy: report). This is more so given the fact that Wal-Mart is not operating in a vacuum.

This implies that Wal-Mart is facing stiff competition from other companies who are equally doing well in the market. Therefore if Wal-Mart is to consolidate its market share and remain operational in the business then it is imperative that it develops a fully functional promotional strategy. The above speculation is more so being propagated by the fact that only last month, Wal-Mart promoted a former executive of Tesco, David Wild as the Company vice in charge of business development. Competition is one of the fundamental reasons for which Wal-Mart has to develop a strategy for promoting her services.

One such competitor is the U. K retailer, Tesco Corp. (TEO. T). This company presents a real threat to the survival of WA-Mart in the international market given that the company (Tesco Corp) intends to penetrate the U. S market with plans of setting up more than 100 convenience stores. The proposed stores are to be 10,000 feet squared and are to be named Fresh & Easy Neighborhood Market in which case they are to be established in the states of Arizona, Nevada as well as California before the end of the year (MarketWatch. Wal-Mart may be a mulling small-store strategy: report).

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