Gilbert
 |
Walmart is able to undercut competitors because of economies of scale. It's large size enables it to cut costs in many ways. For instance, Walmart basically has the most efficient supply chain ever devised by a corporation. Or anyone by that matter. When you go into a store and Florida and buy a television, they instantly put a TV of the same model on the next truck going to that store (provided Walmart is not trying to liquidate that particular model of Television). They are also,able to leverage their large size into extremely favorable credit conditions from all their suppliers. After the US government, Walmart is the biggest customer in the world, and no supplier can afford to lose their business. |
starryeyed
 |
Cheaper, and well-advertised.
Too bad they treat their workers like such crap!
My BF now has me boycotting them, along with him and many others.
I'm fortunate to have him to lean on, so that I can afford to boycott them, though! |
Jen
|
Their cheap prices (from cheap labor practices in developing countries and letting American tax dollars pay for their employees health insurance) are very popular to the demands of American consumerism. I don't think they're popular, I just think they have a lot more money than their competitors, which allows them to have stores. Some people have to shop at Walmart either because they have no where to go or because that's the only place they can afford. Walmart pretty much makes their money on those with lower socioeconomic status. |
edoubleyou
 |
Wallmart has built their huge empire on one basic strategy, called the price point.
Every day of every week each department in the store has one item that has a price that is so low it's hard to believe. That product is strategically place in a prominent place in that department.
After that psychology comes into play.
Here’s an example, small appliances, let say the average decent coffee maker has a price of $20
Wallmart will put a coffee maker at the end of the isle in a special display for $10
Oh my god coffee makers are usually $20, this one is only $10 Wallmart's prices are so low, I wonder what the prices are on the other coffee makers they have?
Look here's one one that has way more features and looks like it's better quality and it's only $25, it must be a really good deal.
The truth, Target is probably selling it for $20 but Wallmart now has you convinced that their prices are the lowest so you buy the thing for $25.
They have been doing this for years, making them one of the largest, wealthiest companies on the planet, its important to note that I just used the word planet, not USA, they are one of the largest, wealthiest companies on the entire planet!
Therefore they have the advertising dollars to be able to continue to convince people that they are the source for the lowest price.
They do have low prices on allot of stuff, but to always get the best value for your money, shop around, remember Wallmart has brilliant, highly educated, highly paid, creative people working for them who’s only job is to figure out new creative ways to get YOU in the door and leave the contents of your wallet behind.
If you think anything other that that you are a fool, and we know all what happens to a fool and his money...
That is how they got the edge, Target on the other hand is selling style aimed at mostly the younger crowd, but I also believe they get older folks who have good taste, but the youngsters are considered to be the crowd to get get because they have more disposable income.
Happy Shopping! |
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