Wall-Mart Case Study Example | Topics and Well Written Essays - 1250 words

Wall-Mart - Case Study Example Wal-Mart, Target and Kmart are the top retailers in the present American market. Each of them is having more than 1000 stores. Wal-Mart is the king of the ring. It's the number one retailer in United States of America. Target is slowly moving closer to Wal-Mart and has become a tough competitor to Wal-Mart. Kmart has a long history; recently it is trying to emerge from bankruptcy reorganization. Kmart is slowly losing its customers to Wal-Mart. Their strategies include low price and highly qualified customer care service. This factor played an important role in the long-term development of the Hotel. The cheaper prices with high quality service and further free goodies attracted many. Another factor is the customer service. Customer plays an important role in the development of the company because it is the customer who uses the product that was developed by the companies was good at it. Before being bankrupted Kmart was the second best retailer after Wal-Mart. Both companies used different strategies to outsmart each other. They tried different strategies to woo the customers. After coming out from bankruptcy Kmart found that it has lost most of the customers to Wal-Mart and other retailers like Target. Its total net profit also declined considerably. Target took this opportunity to its full advantage and started aggressive campaigning. Though the think tank of Target knew that most of Kmart's customers would go to Wal-Mart rather than coming to Target's stores, they started slashing the prices of the products and announced heavy discounts on them. They used innovative ideas to woo the customers. To maintain its top position Wal-Mart used to slash the rates so that when customers come to purchase the items would buy other products also. These items were termed as loss leaders. Most of the middle class families are Wal-Mart's customers. Target aimed at upper middle class. Because of this stiff competition between Wal-Mart, Kmart, Target, Costco, etc., customer has wide range of choices to choose. Customer can buy products at discount rates. The companies are employing every possible method to woo the customers to their stores. Due to the bankruptcy Kmart lost its most of the investors to other retailing companies. The company that largely profited by this was Wal-Mart that was so much preoccupied of defeating Kmart. Most of the investors purchase bonds. A bond is nothing but a promissory note that the company would repay the sum over a certain period at a certain interest rate. Bonds are also called as debentures. If the company is in trouble and has to be dissolved, bondholders must be paid in full before paying the stockholders.Experts advise the investors to buy both Wal-Mart and Target stock. Both the companies had seen upswing of their net profit in the recent past. In the present market everything sells by brand names, the marketers are expected to put up good brand name products for sale. The purchaser desires to have or own a good brand name product and material with good quality at reasonable and cheaper rate. If the marketers were able to meet this demand of people of the society, definitely there would be a souring business for their product. Wal-Mart from its good service,