S1E18: Target vs Walmart: Case Study
Strategy Simplified
Walmart vs Target - What's the Difference?
Walmart and Target both are successful in this space, but they predominantly focus on a different part of that value creation. Walmart as the largest and the most consolidated real tailor in the world is also famous for its incredibly aggressive negotiations with suppliers. So even if Walmart's prices are lower than anywhere else or comparable to other places, their margin on each individual product is healthy because of this aggressive supplier negotiation. Let's look at Target however, Target in contrast is really great at driving a premium basket amount and a premium profit per unit for people that are going through the store. They focus on experience and on driving people when you walk into a Target to walk out with things that you didn't imagine that
