Their entry came out late and overpriced. Then, they changed the product. They launched a new flagship, an online encyclopedia. It was superior to CD competitors because it was not limited by disc capacity, could be constantly updated, and would have its articles linked to World Wide Web pages around the world. Tapscott cites Britannica as a company that has transformed itself to take advantage of the new digital economy, an economy where knowledge and digital communication are important elements of the product.
Discount stores compete on price.
Their strategy has been to buy large quantities at low wholesale prices, warehouse huge inventories, and advertise low prices widely in order to increase sales volume. When competition heated up, rivals reduced costs. You may remember the year, not long ago, when K-Mart surpassed Sears as America's leading retailer. There just isn't much. Then along comes Wal-Mart.