Final answer:
A retailer analyzing its primary advantages over competitors is focusing on its strengths. Retail giants like Amazon leverage their efficient production and cost structures to set competitive prices, influenced by factors of globalization and technological advancements in the marketplace.
Step-by-step explanation:
When a retailer is attempting to determine its major advantages over competitors, it is analyzing its strengths. For instance, a giant retailer like Amazon has achieved notable success due to its efficient production model and cost structure. This strategic advantage has allowed Amazon to offer lower prices than competitors, even when including shipping costs. These elements are central to a company's competitive strategy and are part of what's sometimes referred to as a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). Understanding these factors helps firms, whether large like Amazon or small like a local deli, to determine what products or services to offer, the volume of output, and the optimal pricing strategy. Technological advancements and globalization have also played crucial roles in redefining market competition, as improved communication technologies have expanded the reach of consumers and businesses, increasing the level of competition across local and global marketplaces.