Wal-Mart decides to sell the same jeans in all its retail locations throughout the world.Which of the following is a benefit of this decision to standardize this product line?

Question

Quizplus · Accepted Answer

Standardizing the product line would allow Wal-Mart to benefit from economies of scale, which can lead to lower costs of manufacturing. This is because the company can produce at a larger volume which can help negotiate better deals with suppliers and cut transportation costs. However, standardizing the product line may not necessarily lead to decreased product costs due to varying local inputs or greater sales revenues by responding to local cultural preferences.

Wal-Mart Decides to Sell the Same Jeans in All Its