Wal-mart engaged in cut-throat competition with many other grocery retail chains and supermarkets such as Costco Wholesale Corp., Macy’s Inc., Sears Holding Corporation, Target Corp., and so on. However, if Wal-mart has the upper hand, then it is because of its pricing strategy. While Target and Costco are important competitors, the other brands seem to be not significant competitive threats to Wal-mart. Kmart, Sears, Best Buy, etc. are not strong enough
Intensity of rivalry is one of the main forces that can shape the competitiveness of an industry. The strongest basis for competition in this industry is price. According to IBIS World, because these stores are known for their value offerings, price has become more and more important in the last five years as the economic downturn led to less disposable income to spend on industry goods. Consumers expect prices amongst