Management- Strategies Essay Example | Topics and Well Written Essays - 1000 words

Management- Strategies - Essay ExampleThe growth of the lastingness discount industry is attributed to the wide alternative of merchandise that the stores carried and their everyday low pricing strategy. Full line chains perceived this segment as category killers since their merchandise line-up could not offer the similar amount of shelf space and square footage to any one product category.Research shows that consumers are likely to find what they are looking for in specialty stores than they would in full line discount stores. Buying preferences and buying patterns of consumers also change more often (Gamble, p.957).The full-line discount segment is also growing high-velocity than the U.S. economy. The entire retail discount industry was both rapidly going into consolidation through mergers and acquisitions, liquidation, and bankruptcy. Rivalry in this sector revolves around store location, pricing, and promotion.The climax of consolidation will make it easier for Wal-Mart to m erge with or acquire smaller retail stores in the U.S and abroad. Considering that Wal-Mart is one of the leading stores in the industry, they have the bargaining mogul over their suppliers which in effect would give them pricing advantages over other retailers. If a Wal-Mart moves into a community, chances are the other retailers in that community, especially if they are in private owned are going to lose money and may even be forced to close down. SinceWal-Mart is the largest retailer in the United States and number 1 on the Fortune 500 list, they have the ability to lower their prices and therefore can force other retailers out of business because they can not check Wal-Marts low prices (Pereira et al, 2002).Business level strategies describes how firms outperform each other and enjoy such competitive advantage over time. Michael Porter identifies three generic strategies exist leadership,differentiation, and focus (Dess & Lumpkin, 2002).From the 1940s to the 1970s, the cola i ndustry was dominated by