Wal-mart in Canada
by June Ong
Wal-mart Canada Corp. is currently taking an aggressive approach to knocking out its competitors. They are bringing up sales by significantly lowering their prices in an attempt to steal business from rivals. Wal-marts Canadian division recorded a 0.2% sales gain for retail stores open a year or more. However due to them offering lower prices, operating profit has fallen. This is a perfect example of how a company with a cost leadership strategy and deep pockets can potentially dominate the market. It takes out competitors with a focus strategy on low cost through effective supply chain management and use of technology. I also find it interesting that such a large successful company with an excellent track record in the US may have to adapt and modify its strategy for the smaller Canadian market e.g. smaller store format.