Chapter 13: Meeting the Competition Summary and Analysis

Sam has always believed that competition is a good thing. Rather than avoid competition, Wal-Mart has always strived to meet the competition head on, and for them it has been a superior strategic move. The competition makes Wal-Mart stronger and more honed on the marketplace than it might have been if left by itself.

At first, Wal-Mart only dealt with other regional, smaller competitors. However in 1972, they were given the perfect opportunity to go head-to-head against Kmart in Hot Springs, Arkansas. They had no competition in the area and their prices were quite high. At the same time, the CEO of Kmart decided to step down. Kmart doesn't take the threat of Wal-Mart seriously at first. However, when they go head-to-head, it is one of the best duals and strengthens Wal-Mart.

After Sam quasi-retired, financial...