RSM100Y1 Lecture Notes - Lecture 2: Walmart
Document Summary
Price is too high, higher price in canada than initially anticipated to be, not the (cid:498)u. s. target cheap stuff experience(cid:499) million to cover severance payment to workers. Go big or go home does not work well in retail. Entire population of canada is like the population in one u. s. state. (cid:523)small population dispersed across such a large area as a country. Shipping cost is too much, and the speed of delivery is slow too. Targets in the u. s. have differentiated products so they could compete with wal-mart. (cid:524) Canadians travel across the boarder for (cid:498)private brand(cid:499) which is only available in u. s. but not available in canada. (cid:523)reasons: health regulations/ bilingual packing(cid:524) Promotional difference between canadians and u. s. (cid:523)canadians do not cut coupons, they are flyer driven and use price match(cid:524). The promotional on-sale prices on the front page are even higher than the regular market price! They brought the top-management from u. s. who didn"t recognize the canadian culture.
