Target has been able to flourish in locations with wal-mart stores because wal-mart has suffered from the inertia that comes with long success and reliance on the same core competencies. target is using a focused cost-leadership strategy and has a much narrower competitive scope than wal-mart. target uses an integrated cost leadership/differentiation strategy and appeals to a different customer than does wal-mart. target is able to offer lower prices than wal-mart through capturing more value in the value chain.

The correct choice from given options is "Target uses an integrated cost leadership/differentiation strategy and appeals to a different customer than does Wal-Mart".

Contrasted with organizations depending on a single generic strategy, organizations that coordinate the generic strategies may position themselves to enhance their capacity to adjust rapidly to natural changes and learn new abilities and innovations. Items accessible from organizations following a integrated cost leadership/ differentiation strategy are less separated than items offered by differentiators, and expenses are not as low as those of the low-cost leader (that produces standard items).