Target has been able to flourish in locations with Wal-Mart stores because
A) Wal-Mart has suffered from the inertia that comes with long success and reliance on the same core competencies.
B) Target is using a focused cost-leadership strategy and has a much narrower competitive scope than Wal-Mart.
C) Target is able to offer lower prices than Wal-Mart through capturing more value in the value chain.
D) Target uses an integrated cost leadership/differentiation strategy and appeals to a different customer than does Wal-Mart.

Question

Quizplus · Accepted Answer

Target uses an integrated cost leadership/differentiation strategy and appeals to a different customer than Wal-Mart, allowing them to compete and thrive in locations where there is a Wal-Mart. Target focuses on a more upscale and trendy customer base, while Wal-Mart targets lower-income and more cost-conscious customers. Target also differentiates itself through its design, store layout, and product selection, while still being able to offer competitive prices.

Target Has Been Able to Flourish in Locations with Wal-Mart