Wal-Mart's Use Of Loss-Leaders Case Study by hicaliber

Wal-Mart's Use Of Loss-Leaders
A review of Wal-Mart's use of loss-leading pricing strategies.
# 95635 | 2,229 words | 12 sources | MLA | 2006 | US


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Description:

This paper discusses Wal-Mart's use of loss-leader pricing strategies in their toy retailing operations and how it is detrimental to the long-term viability of the toy industry and ironically, to Wal-Mart itself. According to the paper, this loss-leader approach to pricing toys below their cost to drive up traffic in Wal-Mart's retail stores, is flattening the elasticity curve of newly-introduced toys and causing manufacturers to second-source and often move their manufacturing off-shore, where quality and safety standards are not nearly as rigorous as in the United States.

Outline:
Introduction
Wal-Mart's Pricing Yardsticks: Setting Loss Leaders In Motion
Evaluating Pricing Strategies in the Context of Marketing Strategies
Conclusion
Appendix:Wal-Mart's Supply Chain Efficiencies Pay For Losses on Loss-Leader

Sample of Sources Used:

  • CNN (2003) - Wal-Mart kicks off toy price war. Accessed from the Internet on October 22, 2006: http://money.cnn.com/2003/11/19/news/companies/walmart_toys/index.htm?cnn=yes
  • McKinsey (2003) - Marn, Michael; Roegner, Eric; Zawada, Craig. "The Power of Pricing", 2003 Number 1. Boston, MA McKinsey Quarterly. Pages 27 - 36.
  • Grant (2004) - Wal-Mart Doesn't Plan to Toy Much With Prices; Last Year's Cuts Hurt Other Retailers and Left Giant Thinking it Slashed Too Much. USA Today. Pg. B8, October 11, 2004.
  • Retail Pricing (2006) - Retail Pricing: The Optimization Story Expands. Michael Barret and Janet Suleski. Thursday September 7, 2006. Accessed from the Internet on October 22, 2006: http://www.amrresearch.com/Content/View.asp?pmillid=19731
  • Wal-Mart Facts (2003) - Wal-Mart Tops $1.52B in A Single Day of Sales.Accessed from the Internet on October 22, 2006: http://www.walmartfacts.com/articles/4037.aspx

Cite this Case Study:

APA Format

Wal-Mart's Use Of Loss-Leaders (2007, May 29) Retrieved December 06, 2019, from https://www.academon.com/case-study/wal-mart-use-of-loss-leaders-95635/

MLA Format

"Wal-Mart's Use Of Loss-Leaders" 29 May 2007. Web. 06 December. 2019. <https://www.academon.com/case-study/wal-mart-use-of-loss-leaders-95635/>

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