McDonald’s Focus on low Prices Brings in Customers

McDonald’s Focus on low Prices Brings in Customers


In this discussion thread, you are tasked with the selection of your 2 companies for the first quiz question for this module.

The quiz for Module 1 consists of 3 essay questions, worth 15 points each.

For the first question:

You are asked to identify 2 unique companies – one that you believe pursues a lowest-cost strategy and another that pursues a differentiation strategy.

Relying on personal knowledge, company annual reports, or articles in newspapers and business periodicals, discuss these companies’ competitive strategies. 

In this discussion thread, you will share with the class the 2 companies you have selected for your analysis. Each student is expected to select 2 unique companies – in other words, each company can be used only once for the question. So my suggestion is to select early and post here – the first student who selects the company will be allowed the use of that company. At that point, different companies must be selected. 

student 1

A company that pursues the lowest-cost strategy would be Walmart, which I am sure comes to everyone’s mind when thinking about this topic. If you are looking to buy products at the lowest price possible, Walmart is where to go. They can offer their products at “Everyday Low Prices” just as their slogan suggests on a large scale. Walmart can keep their prices low by the enormous volume of sales and the large customer base. Walmart cost-effectively manages its supply chain.

“Supply chain management based on electronic product information, vendor role in distribution, and layout of warehouses: Walmart has a supply chain system that is regarded in multiple quarters as one of the most technologically advanced and efficient” (Hyde, 2018).

In my opinion, Walmart sometimes has a bad reputation for not being the nicest looking or lacking cashiers, but that does not seem to matter as the price seems to drive their sales and people are taking advantage of their prices and products. I believe the growth for e-commerce will only help their sales and keep them on the top as a company that offers the lowest prices around.