Walmart
Walmart is the largest retail shop globally and founded in 1962. With giant retail competitors such as Best Buy and Target, Walmart has managed to be highly profitable and competitive by applying the cost leadership approach. Consequently, its slogan states, “Save Money. Live Better.” It is a true reflection of its word as it provides a broad range of products at costs lower than those of its competitors. Besides, every person wants to save as much as possible during a recession, and as a result of cheaper products provided by Walmart, hence giving the business profit, sustainability as well as a competitive advantage. Moreover, Walmart utilizes differentiation as an approach by providing tailor-made products to fulfill client’s unique wants and gods. This significantly boosts loyalty for clients and in turn profit and sales.
On the contrary, Bloomingdales is a luxury chain store in the fashion industry. Unlike Walmart, the company deals with pricey designer products. The firm was founded in 1861 and uses the slogan “A Store like no Other”, and looks to attract customers and also satisfy the market in generation bvy operation-managemencoming up with designs and ideas that will suit a huge multitude. Hence, every person who walks into the store will most likely come across a product that fascinates them, be it a handbag or a t-shirt, and in excellent quality. The strategy of differentiation has given the company, whose headquarters are located in Big Apple a competitive edge over other fashion houses.
The last firm is Target which is in the same industry as Wal-Mart, thereby making them competitors. Target company being a retail store that mainly supplies a variety of products from clothes to home appliances to groceries, the firm cannot employ differentiation as a competitive approach. However, just like Walmart, Target uses cost leadership though with a lower bargaining power with suppliers as compared to Walmart, which is doing far much better, profitwise. When all is said and done, a slow economy implies peak season for Target as clients are looking to save as much as possible.