Walgreens, Target and Costco are among the largest retail companies in United States and also in the world. Walgreens is one of the largest Drugstores in the U.S and has more than 8,210 locations that include 7,761 drugstores. Walgreens pharmacies are in almost all regions in the US serving more than six million customers each day. Kroger is a retail food chain in America. Bernard Kroger founded it in 1883. Its main headquarters are in Cincinnati, Ohio. Ranking it by the revenue, it is the number one supermarket chain, number two general retailer, and 25 among the largest companies.
Costco, a Wholesaler Corporation that provides a variety of merchandise, was founded in 1983 by James Sinegal and Jeffrey H Brotman. Its main headquarter is in Issaquah, WA. it deals with products such as computers, clothing, gourmet food and gardening among others. The Target Corporation is a retailing company in America that was established in 1902, and it headquarters are based in Minneapolis, Minnesota. It is the second retailer shop in the US after Wal-Mart. It deals with a variety of products ranging from clothing and shoes, accessories and electronics, and many others.
Walgreens has adopted a price differentiation strategy whereby they are transforming the drug store into a “health and living destination”. The company is combining a cutting-edge design that is aimed at improving product assortment. The company is also a low cost producer (Dess, 2012). To achieve this, the company has invested profoundly on technology and adopting new initiative that aims to take advantage of the lower price trend.
Through differentiation strategy, Target Corporation has acquired the power of its brand. The style differentiation has been enhanced by the exclusive product line and design partnerships to maintain the top quality at attractive and affordable price.
Costco uses low-cost producer strategy to compete effectively in the global market. The company has effectively been able to use this approach by endorsing aspects such as volume purchasing, reduced handling of merchandise, efficient distribution and effective management of its premises, machines and equipment. By engaging in mass production, the company has attained a rapid stock turnover and improved operating efficiencies (Dess, 2012). It has been able to give consumers the best value at the best prices and also treat people with respect and dignity. This has enabled it to create a strong customer base that has guaranteed it continuous profits. Additionally, it has been able to efficiently manage its suppliers to ensure the success of its low-cost production approach.
Walgreens has packed its products in different, small, attractive packages that appeal to customers. Additionally, it is using technology that is far above that used by its competitors in the same industry. Target Corporation is embracing an exclusive product line that no competitor can match. Additionally, it produces unique, quality products that are offered to the consumer at a very low cost. On the other hand, Costco uses modern facilities such as machines that enable it to produce its products at a low cost. It additionally, it has set up its branches in regions where raw materials are easily available so that it can acquire them at a low cost (Dess, 2012).
The above strategies have been effective in the success of the companies. This is evidence considering the current performance of the companies in both local and international markets. They have been able to create a strong customer base, registered high sales revenues and enormous profits. Their success can utterly be accrued to the strategies formulated and implemented.
References
Dess, G. G. (2012). Strategic management: Text and cases. New York: McGraw-Hill/Irwin.
