Even Wal-Mart is setting up to be LOWER Cost

In times of financial turmoil, the thinking goes that the company with the lowest cost strategy "wins". Typically, Walmart is seen as the company with the ultimate low cost strategy. Company lore includes stories of Sam Walton and other Executives sharing rooms when they went on business trips.

Conventional wisdom is that companies should be looking at ways to reduce their costs dramatically in a time like the current recession. If you can believe it, it looks like even Walmart is looking at how it can trim costs!

Report on Business (via Reuters) reports that Walmart is set to slash prices and unveil changes to its branding (probably that blue background and yellow sun that we've been exposed to from US commercials over the recent past, as well as the new slogan "Save Money. Live Better.").

In fact, Reuters is also reporting that in the US, Wal-Mart is continuing to cut prices 10-30 pct on many items.

As the low-cost and low-price retailer, Wal-Mart expects to to win sales and new customers in the current economic environment. Wal-Mart's message will focus on value, value, and more value.

In fact, the slumping economy is helping Wal-Mart in two ways:

• They are playing on the fragile confidence of the consumer, and
  
• Negotiating lower prices from vendors.
  

So - watch for Wal-Mart to thump their competitors hard this year. At the same time, their's is a great strategy to copy regardless of what business you are in.