Free Writer’s choice Dissertation Example

Level: College
Pages: 1
Words: 275
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Economies of Scale Name Institutional Affiliation Wal-Mart is one of the corporations that have been able to retain its competitive position in the market despite the increasing pressure from the new entrants. Over the years, the firms have diversified its operations to a different market, thereby, attracting the interests of numerous suppliers. Groceries are one of the product lines that have enjoyed the economies of scale (Lichtenstein, 2011). The company purchases in bulk, thereby, forcing suppliers to accept low prices. In addition, it adds a small profit margin to every bunch and makes enormous returns. The company exploits the economies by targeting a market segment with low income. This makes the largest target market in the US. The strategy has acted as a barrier to entry for other interested investors (Roberts & Berg, 2012). The reason is that the company has been able to link with its suppliers who enjoy the contract of selling an enormous amount of groceries th...

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