At present , Wal-Mart was able to
keep off some of its competitors by instituting low price tags for its
products . However , some of its competitors , notably , Dollar General was
able to neutralize the price advantage of Wal-mart by putting its price levels
on the same footing with Wal-mart . Wal-mart should lower its price level just above
the firm 's firm on a new price advantage situation which other competitors , by
virtue of their higher variable costs , would not be able to match . With
regard to economic environment , Wal-Mart is vying to open stores in
China . This is a good strategy since labor price in China is 50 less
than labor price in America . Wal-Mart needs to maximize this opportunity
Walmart (strategy to beating competitors)
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At some point Sam Walton made the decision to achieve higher sales volumes by keeping sales prices lower than his competitors by reducing his profit margin. By 1970, he had eleven Walton's stores Inspired by the successes of other discount department store chains, Walton opened the first store in his own discount chain in Rogers, Arkansas that year. Responsible for the purchase and maintenance of signage, Walton's assistant, Bob Bogle, came up with the name "Wal-Mart" for the new chain. By 1967, the company grew to 24 stores across the state of Arkansas, and had reached $12.6 million in sales, and by 1968, the company opened its first stores outside of Arkansas in Sikeston, Missouri and Claremore, Oklahoma.
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