Wal-Mart to the Rescue?

————————————————-
RETAILWIRE DISCUSSION TOPIC

Economic Downturn? Wal-Mart to the Rescue– 1/30/08
————————————————-

TOPIC SUMMARY:

While much of the retail industry is hoping that Congress will pass a stimulus package that will get consumers shopping again, Wal-Mart is looking to jumpstart spending with a price rollback of 10 to 30 percent on thousands of items in its stores and on its website.

Discussion questions: How effective will Wal-Mart’s latest rollback public relations effort be in driving traffic to its stores and grabbing market share in the short and longer term? What will be the response from Wal-Mart’s competitors? Can they handle a prolonged price war with Wal-Mart?

My post:

During market downturns, companies with strong cash reserves invest heavily in building market share.  This is what Wal-Mart is doing, and capitalizing on its leadership as a “low price leader.”  The move is smart, timely, and most importantly it is congruent with their vision and mission.  Weaker competitors will suffer more than stronger ones, but Wal-Mart’s move will certainly challenge all purveyors of consumer staples – as they always have.

Mike Osorio, your Dare to be Contagious! ™ strategist

www.OsorioGroup.com

————————————————-
GO TO THE FULL STORY AND DISCUSSION:
http://www.retailwire.com/Discussions/Sngl_Discussion.cfm/12723  

————————————————-

Thank you for visiting my blog!  Please subscribe using the RSS button and comment on my postings.  Comments are the life-blood of any blog and I appreciate yours!

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: