WMT
🛒 Walmart built supermarkets in rural areas with less competition, creating cost advantages.
🚚 Efficient transport networks allowed Walmart to maintain low prices for consumers.
📍 Local dominance and brand recognition contributed to a captive demand.
@adriarivero:
“Walmart focused on building its supermarkets in rural and suburban areas. By choosing these locations where almost no competitor dared to enter, and having a merchandise transport network that allowed it to maintain low prices for the consumer, Walmart had a great competitive advantage. It had cost advantages because it had a much more efficient route than the competitors, and Walmart was in more remote places, dominating that geographical situation at a local level. This was combined with local scale, dominating a specific area, and captive demand, as Walmart was a recognized brand and customers preferred to go to those stores.”
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