Walmarts Everyday Low Pricing Strategy - Assignment Example

The Wallmarts everyday pricing strategy was reported to be a successful pricing strategy and was adopted by numerous businesses in the United States. The strategy was applied by most business to consumer /goods such as tooth paste, toilet papers to mention just but a few of the products (Matthews, pp.1-2).  Wallmarts everyday pricing strategy has been reported to have some disadvantage. Among that disadvantage include; low product quality perception. This means that customers may perceive that cheaper goods may mean low quality goods.

Further, price reduction by Wallmarts could mean that sometimes the company may be forced to sell goods and services at a loss in order to remain competitive in the market. It has been discovered that Wallmarts everyday low pricing strategy may detriment its operations (Soderquist, p.211). This means that this strategy reduces Wallmarts profit margin. Therefore, instead of concentrating on everyday low pricing strategy Wallmarts should employ other marketing strategies such as segmentation, distribution and market expansion strategies to remain competitive (Cheng, paras. 2-6)