Wal-Mart was one of the most successful firms of the 1970s and 1980s. Much of Wal-Mart's success can be credited to its expansion strategy: they rushed to open the first discount store in small towns that could only support one discount store. In the language of game theory:
A) Wal-Mart was a dominant firm.
B) Wal-Mart made empty threats.
C) Wal-Mart employed a maximin strategy.
D) Wal-Mart employed a preemptive strategy.

Question

Quizplus · Accepted Answer

Wal-Mart employed a preemptive strategy by rushing to open the first discount store in small towns that could only support one discount store. This strategy enabled Wal-Mart to establish itself as the dominant firm in those towns and deter any potential competitors from entering the market.

Wal-Mart Was One of the Most Successful Firms of the 1970s