As a cost leader, Wal-Mart is able to defeat its rivals largely because its competitors
A) cannot meet the quality of Wal-Mart's products.
B) cannot invest in operational efficiency because of low profit margins.
C) are committed to using expensive unionized labor.
D) have not generated the customer loyalty Wal-Mart has developed.

Question

Quizplus · Accepted Answer

Wal-Mart's low prices are largely a result of its operational efficiency and ability to keep costs low. Competitors may struggle to invest in the same efficient processes due to their smaller profit margins.

As a Cost Leader, Wal-Mart Is Able to Defeat Its