Walmart Wheel of Retailing

(Spa Botanica, 2012, Walmart Logo)

From the 1970s to the 1990s, Wal-Mart emerged at the low end of the market, offering customers low prices through efficient operations. However over time the retailer became ‘fat’ as a result of letting their prices increase. This was as a result of upgraded facilities and improved service which in turn increased the retailer’s prices. Through this, the brand became replaceable and was turned down for lower priced competitors- and thus the cycle was complete (Gilmore. D, 2007).

This theory again contrasts the groups pricing strategy as Solent Reds can only obtain their products from one supplier, who has a fixed selling price for the goods. This prevents the brand being able to move through the Wheel of Retailing.

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