Broad Strategy

Now for the three retail stores that I am going to use are Wal-Mart, McDonald's, and Target. Each one of these retail stores has a different broad strategy. Wal-Mart is the low-cost provider. McDonald's has the differentiation strategy. Target also has the differentiation strategy.

First, I am going to talk about Wal-Mart. Wal-Mart is always showing that they are lowering their prices all the time. There is an extensive competition on pricing, location, store size, environment when it comes to Wal-Mart and their competitors. With all the competitors that Wal-Mart has, Wal-Mart has the lowest prices and market share. There is a very broad base of customers and demand for lower prices. (Strategy Development, 2011) Now for Wal-Mart's supply chain management is cost effective. Another cost-effective method that Wal-Mart has is their ability to track the movement of their products. Also, operations and distribution strategies also helps Wal-Mart achieve their low-prices. Wal-Mart also spends less time on advertising than their competitors. One of the Wal-Mart's foremost strategies is to provide superior customer service.

Second one that I am going to talk about is McDonalds. McDonald uses the differentiation strategy. What that means is that they differ between everything. Here is one example of that and it is that when they were under fire for increasing unhealthy habits of Americans, and they then offer a healthy alternatives. This strategy continues to focus on promoting the brand's core products while delivering new products to help keep the menu relevant. (Hoyland, 2010) They also have a differentiation is service. And also McDonald's is focusing on the differentiation on their customer service experience by investing in new technology. When it comes to the brands advertising it will support the brand's differentiated service.

The last one that I am going to mention is Target. Target also uses the differentiation strategy. They are all in full experience plus the value for money. When it comes to their competitors they avoid competing against any of them. As for the success of Target they try to illustrate the importance of distinctive communication in achieving on anything other than low prices. (hbswk.hbs.edu) To be able to offer the most up to date stuff to the customers Target will focus on merchandising. Also Target will work on conveying the image to their customers through the stores layouts and displays, and also through promotions. (Barwise, 2004)

For the tactics that each one of them show to support their strategies and how to improve their stores. Let's begin with Target and the tactics that they use are to focus on merchandising and to upscale the discount chain to get to