Wal-Mart on the March
Given the facts that Wal-Mart has been exhibiting aggressive marketing strategies to dominate the retail industry, its competitors could not be blamed if they are constantly on their toes in anticipating how to respond and react to Wal-Mart’s apparent expansive blanketing strategy that directly endanger their entrenched market shares. To respond to the question: ‘should something be done to reign in Wal-Mart's retail dominance?’, one is taking the point of view of an apparently distressed and affected competitor. As a competitor whose market share is becoming endangered by the intensified strategies of Wal-Mart, the following alternative courses of action could be taken into consideration: (1) apply a head-on strategy that would meet Wal-Mart’s strategy on a one-on-one basis. For instance, if Wal-Mart announces the lowest price in a particular product, one would aim to likewise offer the same product at exactly the same price; (2) design a more effective strategy that would cater to the needs of the local market. Since it could be assumed that one’s retail store has been established in that particular locality longer than Wal-Mart, one should have a competitive advantage in terms of familiarity with the likes, preferences, and loyalty from local patrons. Thus, one must apply strategies such as personalizing, providing loyalty discounts which are difficult to resist, and capitalizing on the length of time that the retail store has established bonds with the local clientele; or observe and determine Wal-Mart’s weaknesses and bank on them ; and finally, (3) leave the area and establish another branch where Wal-Mart does not have any retail store (avoidance strategy). This strategy would presume that one acknowledges that if one’s business is to continue existing side by side with Wal-Mart, eventually, the decline in market share might jeopardize the financial success of the organization and would ultimately lead to closure or bankruptcy. Thus, by leaving early and establishing a new foothold in other areas, there is still a possibility to redeem the corporate name and expertise in retail service.
Works Cited
Associated Press. "Rivals exploit Wal-Mart's missteps." 8 February 2011. MSN Money. http://money.msn.com/stock-broker-guided/rivals-exploit-wal-marts-missteps-ap.aspx. 6 June 2013.
