Walmart Vs Costco : Competitive Strategy

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WALMART VS COSTCO: COMPETITIVE STRATEGY XXXXXXXXXXXXXX MBA 500 Essentials of Business Management September 3, 2015 Larry Frazier City University of Seattle Abstract This industrial paper analysis and compares the competitive business strategy between Wal-Mart stores Inc. and Costco Wholesale Corporation by using the components of a competitive analysis model by Michael Potter. The purpose of this paper is to help better understand the business strategies, the companies current strategies and ways to improve their strategies. The paper will also give an insight to the SWOT analysis of both the companies. Introduction When Walmart was founded in 1962, they were just a small store but they had the competitive advantage of blue ocean. Costco later entered the market in 1983 and has been growing exponentially and now is one of the biggest competitor of Walmart in the United States of America. Company Summary Wal-Mart Stores Inc. Wal-Mart Stores, Inc. (Wal-Mart or 'the company ') operates retail stores in various formats across the world. In the US, the retail formats operated by Wal-Mart include discount stores, super centres, neighbourhood markets and other small store formats. Internationally, the company has presence in Canada, Argentina, Brazil, Chile, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, China, India, Japan, Mexico, the UK and Africa. Wal-Mart is headquartered in Bentonville, Arkansas and employed about 2.2 million people as of January 31,

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