Costco vs. Wal-Mart

1282 WordsJul 30, 20116 Pages
Costco vs. Wal-Mart With $401.2 billion revenues, the retailing giant, Wal-Mart, has been ranked as the 2nd place of 2009 Fortune 500 companies. This company is seen as the most successful business in the world today but also viewed as the vital indicator to observe the status of financial crisis recovery. Wal-Mart has won market share during the recession by offering customers lower prices as its successful marketing strategy. Moreover, Wal-Mart is long for expanding its kingdom all over the world. In 2005, Taiwan once was one of Wal-mart’s plans to join the overseas expansion, nevertheless, Wal-mart veered round to China at the last minute. Instead, the Costco (24th place of 2009 Fortune 500) with 71.4 billion revenues completed…show more content…
B. External 1. Different orientation of target consumer of Costco and Wal-mart. For Wal-mart, it concentrates on customers of each level from rural community who would like to travel greater distances for lower prices and more merchandise variety. However, Costco is a exclusive club for business who is looking for bulk-buying and now it spilled over to high and working class. The different customer segments divide the marketing strategies of these two retailing business. For example, it affects the price making and merchandise selecting in stores. 2. A discount retailer who is strictly based on low price, Wal-Mart's "everyday low price" philosophy is running their stores quite successfully. In addition, Contrasts with other small company and retailing business, Wal-mart uses a strategy of odd number pricing. This strategy has been tested and has proven that people tend to buy items, which are odd number priced, more than, a price ending of zero. III. Unique marketing strategy & competitive advantage of two parties. A. Wal-Mart 1. Stable quality control under low prices. While retailing battle ultimately focus on how to offer lower prices, customer may concern that low prices equal to poor qualities. Wal-mart promises to offer their customer with the lowest prices with guaranteed quality goods. It sets strict quality standards to control its suppliers to take full responsibility for their product lines and avoids providing poor quality

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