Wal Mart

Customers

Organizations survive and gain profits based on meeting the needs, wants and providing benefits for their customers and consumers. Failure to do so will result in a failed business strategy.

Even though Wal-Mart tried to target on up-markets with their high-grade products as a new strategy, it was abolished due to individuals with lower incomes did not adapt to their shopping habit. As a result, Wal-Mart set the price leadership strategy, which pursues lower costs in broad target.

Conversely, buyers (customers) have the initiative in choosing the place to purchase. This is because other competitors, such as Kmart, Target, or Amazon, also offer similar consumer-products, and consumers are allowed to pursue lower prices. Then it is likely to be more prices that are comparable and lower profitability. Therefore, Wal-Mart cannot take the bargaining power from buyers easily.

Customers: specific consumer or client's groups, individual, and organization's goods and/or use its services. Wal-Mart has grown by paying careful attention to its market niche of customers that looking for quality products at a bargain price.

Buyers are a constant threat to Wal-Mart because there are so many competitors. The purchasing decisions of a consumer are usually based off of price, convenience, quality of product, the type of shopping, and personal values. If each brand of a product is similar to all the others, then the buyer will base the purchase decision mainly on price (compare the products that have lower prices with more quality products). Not many competitors can beat the prices of Wal-Mart, however there are competitors that offer better quality products and some consumers may want to pay extra to receive better quality goods.

Personal values of consumers typically dictate where their shopping will be done.

Although many people enjoy Wal-Mart for their low prices and one stop shopping, some look at Wal-Mart as a company that is destroying the economy...