Which factor determining competition is typically considered Walmart's competitive advantage?

• A. Exclusive access to patented technology
• B. High product differentiation
• C. Low production costs due to economies of scale
• D. Limited geographic presence

Answer: (C)

Verified step by step guidance

1. Identify the key factors that determine competition in a market, such as cost leadership, product differentiation, access to technology, and geographic presence.
2. Understand Walmart's business model, which focuses on offering a wide range of products at low prices to attract a large customer base.
3. Recognize that Walmart achieves low production and operational costs by leveraging economies of scale, meaning it reduces average costs by increasing the volume of goods purchased and sold.
4. Compare the options given: exclusive access to patented technology, high product differentiation, low production costs due to economies of scale, and limited geographic presence.
5. Conclude that Walmart's competitive advantage is primarily its ability to maintain low production costs through economies of scale, enabling it to offer lower prices than competitors.