Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 36

A Case in Competitive Strategy: Wal-Mart and Target

These questions are intended for open discussion and expression of differences of opinion. Here we have a preforma of some thoughts on these competitive issues, combined with some of the most recent news reports available at the time of publication.

The decision to advertise in Vogue shows Wal-Mart’s intent to change customer expectations, and to get the message out to consumers that Wal-Mart has quality fashion products. The initial ad piece appeared in the September 2005 issue of Vogue. In mid-2005, Wal-Mart selected John Fleming to head up marketing; Mr. Fleming previously led the firm’s online business and is also a 19-year veteran of Target Corp. The question is, can Wal-Mart manage to be arguably the world’s best cost leader, and show some style at the same time?

Step 1 of 2

Cost leadership is a strategy adopted by company where they sell products at lower price than the competition. Differentiator is a strategy where the company try to produce goods and services which are considered different and unique in some aspects in eyes of the customer.