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The case study by Zenith Management Consulting titled “How to Exploit Wal-Mart’s Weaknesses” shows that Wal-Mart’s “business model is not really low-price,
it is creating perceptions that prices are lower than they really are….

– Low prices matter more to consumers because they think Wal-Mart’s are so much lower.

– Consumers forgive Wal-Mart’s poor quality, service and convenience because they think Wal-Mart’s prices are so low.

-Consumers who shop at Wal-Mart become caught in a self-reinforcing loop that makes them keep shopping there.

-80-85% of Wal-Mart’s products are more expensive.

-Masters of manipulating perceptions.”

This is a very telling report and demonstrates how Wal-Mart will work to manipulate perceptions and change the framework for the business environment in a town like Yelm.

Read the full PDF of the study for yourself.

Posted by Steve on September 18, 2007 at 6:18 am | Permalink

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