Wmt II There Are a Essay

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Another opportunity that the company has is to gain market share by running competition out of business. Many smaller and weaker firms have already been run out of business by Wal-Mart. There are, however, some other players such as K-Mart that the company is capable of bankrupting. Wal-Mart is also targeting relatively weak firms like Toys'R'Us before setting its sights on major players such as Target or Costco (Gregory, 2009). The company's financial strength through the recession has left it in a strong position that it was in a couple of years ago, unlike many of its competitors. The company is poised to leverage this strength to enhance its competitive advantages over its customers.

There are other opportunities for Wal-Mart as well. The company's stores are large and it is often difficult to move these stores into dense urban neighborhoods.

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Yet, it is possible to follow the model of some European hypermarkets and introduce smaller urban stores with more limited selections, focused on staples, offered at the same low prices. This is contrary to the company's traditional small town and suburban focus, but allows it to fill in market share in city centers, whose customers presently must drive to the nearest discount store if they want one, and that store may not be a Wal-Mart. Filling in urban centers with smaller concept stores would give Wal-Mart greater access to the urban market.

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