ESSAY Example | Topics and Well Written Essays - 500 words - 1

Essay Example to their customers by pursuing a cost leadership strategy; this strategy seeks to reduce production and transportation costs as much possible to offer a competitive product (Jaquier 2010). These savings can then be passed onto the customer, who then receives a cheap product. This type of organizational can be used as a short-term measure to increase sales and attract customers, but there is little profit to be made over the long term. Another organizational approach that retailers can use to add value to their customers is a differentiation strategy. In this approach, an organization seeks to make products that are of superior value to competitors’ products. The focus is not so much on price but on offering products that are hard to find and of high quality. Customers who are attracted to this strategy prefer products that are high quality even though the price may be a little more than market average. These types of customers are often loyal to one brand because they place so much emphasis on brand quality. The last approach used by retailers to add value to their customers is a focus approach, which is a combination of the first two strategies. In this approach, retailers attempt to offer quality products at low prices. This approach is one that is very hard to implement during the initial stages of an organization’s entry to the market because of the level of expertise required. Retailers that are already established in the market more often than not have the tools required to implement such an approach. This generally comes about through a well-developed supply chain that can reduce unnecessary costs. One retailer that provides a lot of value to its customers is Wal-Mart. Wal-Mart is an established retailer in the American market that pursues a focus strategy; no other retailer can match Wal-Mart’s low prices with the same amount of quality. Wal-Mart’s motto of â€Å"Low Prices. Every Day. On Everything† (DInnocenzio 2011) is one that is attractive to