When Your Competitor Delivers More For Less

What happens when the world is taken over by mass merchants, providing low cost and high value? Wal-Mart exemplifies the beast and has provided its name to new terms, such as the 'Wal-Mart effect,' to describe the results. McKinsey sees these value-driven companies moving beyond price and, more and more, competing in quality, service and convenience -- attributes that niche players across industries used to label themselves with to differentiate from the mass merchants. Value-driven competitors have two advantages in the consumer market: 1) cost advantage via their industry and execution, and, 2) an advantage in consumer perception of the quality of their products. Value players are hear to stay, and consumers have been trained by the expectations they have set. They already have a significant influence on the global economy that isn't about to relax. The lasting social and economic impact on most countries are still unknown, and the uncertainty needs a lot more attention from governments.