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.