Target has been able to flourish in locations with wal-mart stores because wal-mart has suffered from the inertia that comes with long success and reliance on the same core competencies. target is using a focused cost-leadership strategy and has a much narrower competitive scope than wal-mart. target uses an integrated cost leadership/differentiation strategy and appeals to a different customer than does wal-mart. target is able to offer lower prices than wal-mart through capturing more value in the value chain.
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Home » Business » Target has been able to flourish in locations with wal-mart stores because wal-mart has suffered from the inertia that comes with long success and reliance on the same core competencies.