Question

Walmart exemplifies the power of information systems coupled with excellent business practices and supportive management to achieve which of the following?

Answer 1

Answer:

The answer is operational efficiency.

Explanation:

The founder of Walmart Sam Walton created a business model that involved three strategies: volume, economies of scale, and the minimization of operating costs. Walmart can successfully offer lower prices because of the volume at which they offer products. Their margin of profit is lower than the competitor on each item but they manage to eventually create an economy of scale with this because they move much larger volumes to make up for the lower margins.  Walmart now has the bargaining power to shape the supply sector to their advantage and to keep the costs of providing retail space and services low.