please use this discussion board to compare Wal-Mart and Target with regard to their overall business model. These two are the major players and their business models are similar but different in may obvious and subtle ways. A business model is basically how a business makes and spends its money. Once you research and see how Wal-Mart truly operates, you will be amazed at the power they have in the marketplace. This is a discussion board and treat it as if you are a group of 20 to 25 students sitting around discussing the business models of Wal-Mart and Target.

You are required to have two original posts and two responses to classmates’ posts per discussion board. Reference needed.

Original post 1:

Original post 2:

Responses to classmates’ posts: (choose two of them to responses )

1.Target has positioned itself as mid-range department store, while Wal-Mart is a perceived lower-end department store. Both offer the same categories of merchandise, however Target is perceived a higher grade of merchandise than Wal-Mart.

Target’s slogan is “Expect More, Pay Less”, compared to Wal-Mart’s slogan “Low Prices. Every day. On everything.”

While Walmart and Target both are discounters, they cater to different customers. Walmart, which says its customers’ average household income ranges from $30,000 to $60,000, hammers its low-price message and focuses on stocking basics like tee shirts and underwear along with household goods.

Target, whose customers have a median household income of $64,000 a year, is known for carrying discounted designer clothes and home decor under the same roof as detergent and dishwashing liquid. This fashion-forward image hurt Target during the economic downturn. People didn’t perceive Target as having the best prices. To combat that, the retailer expanded its food offerings and began to emphasize low prices in its advertising. These two things put Target in direct competition with Walmart. They also started a 5 percent discount program for customers who use its branded credit or debit cards.

Walmart offers deeper discounts and a broader assortment of merchandise. Target, on the other hand, is still trying to appeal to higher-end shoppers.

Personally, I have never been a Target customer. Over Christmas my grandsons wanted a particular gift featured at Target. I reluctantly took them there to shop. Upon leaving, I told them that we would never shop a Target store again because the prices were too high and the selection was terrible. Yes, they did have a few nice products, but even on clearance they were priced beyond my comfort zone.

2.Wal-Mart is one of the world’s largest companies, and one of the world’s largest employers in the world. Wal-Mart’s strategy is “Everyday Low Prices”. Wal-Mart is globally known, and has been a leader in the industry because it prides itself on selling products at lower prices. Its model is built on low prices due to the large volume of sales at a minimal cost. Wal-Mart succeeds because it is able to maximize productivities and reduce costs, minimize operational and overhead expenses, and has the ability to force suppliers to lower prices due to its strong bargaining influences. Wal-Mart continues to thrive, because it is able to strategize and set the locations of its stores in areas and communities where people will buy their products.

Wal-Mart’s Strategic Business Model:

-Leader on Prices

-Invests to differentiate its products

-Competitive on variety of products

-Able to deliver a great experience

Target’s strategy is “Expect More. Pay Less.” Target prides itself on product value and improvement, all while providing an outstanding shopping experience. Target wants to appeal to consumers, and wants it to be their preferred shopping location. Target is able to offer name brand trendy products, at affordable prices. One of Target’s strengths is that it is favorably recognized and well respected by consumers, due to its ability to create a more pleasurable shopping experience . Target offers price matching, and it also offers a 5% discount upon use the Target’s REDcard.

Target’s low prices, but high quality name brand products, have allowed it to expand and stay competitive with retailers, such as Wal-Mart.

3.Wal-Mart and Target, along with Costco, are the top 3 retail chains in the world, but each pursues a different business model. Wal-Mart is the largest retail chain in the world with 11,000 stores in 27 countries. Target has 1,803 locations in the U.S., Canada which closed in 2015, and India.

Wal-Mart’s strategy focuses on “lead on price, differentiate on access, be competitive on assortment, and deliver a great experience.” No one can beat them on their price, due to an ability to leverage their buying power, and efficiencies in their distribution chain. Wal-Mart, in my opinion, does not deliver on its “great experience” strategy. I have gone into their stores at different times, days, and locations, and most of the time I experienced surly, unhappy associates, or no associates to help find an item, and associates that do not even acknowledge my presence. Most times I have gone to Wal-Mart, especially if it is a busy day like Saturday or the Holidays, customers are lined up across the store to check out. On more than one occasion I have left the store without purchasing because of the lines or rude associates.