Run-Down The The Competition: Factor
Run-Down The The Competition: Factor
Run-Down The The Competition: Factor
the Competition
By – Aakash deep
09mba052
Wal-Mart strategy against competitors
•Always low price
•Wal-mart is master of manipulating perceptions.
Walmart makes consumers think that their prices are
lower than the competitors prices.
Once consumers are convinced that Wal Mart’s prices
are lower, they become stuck in a self reinforcing loop
that keep them shopping at WalMart.
•Walmart’s buying practices injure it’s vendors
Each year walmart set the price it wil pay to supplier for
each item, and also set the quantities that supplier must
sell to walmart.
If the supplier can not meet walmarts’ price and volume demand
it is dropped.
they also decrease the margin to the supplier with the time and
volume of quantities.