It is interesting to hear how Wal-Mart stores began as I was not aware of the history of how the company had grown to the large retail and wholesale giant they are today. There is a definite relationship between economies of scale and the success they business has accrued. Because they purchase enormous quantities of products for resale, the cost for the consumer is much lower; therefore, creating the competitive market advantage (Thomas & Maurice, 2010). Personally, I can’t think of many substitutes for lower prices; however, because I have personal preferences for specific items I purchase (i.e., meat, make-up, clothing, etc.) I may choose to pay more for substitutes.
As you mentioned, Target stores can compete with other retailers because,
As you mentioned, Target stores can compete with other retailers because,