Question

Wal-Mart initially used a focused cost leadership strategy to compete only in small communities by using sophisticated logistics systems and efficient purchasing practices to gain a competitive advantage. The response of local competitors was _______ because they __________.

a. rapid; were nimble and flexible
b. slow; lacked the ability to marshal resources
c. rapid; perceived gains from responding to Wal-Mart's attack
d. rapid; had the resources and flexibility compete against Wal-Mart

Answer 1

The response of local competitors was rapid because they perceived gains from responding to Walmart's attack.

Step-by-step explanation:

The response of local competitors was rapid because they perceived gains from responding to Walmart's attack.

When Walmart initially used a focused cost leadership strategy to compete in small communities, they gained a competitive advantage through sophisticated logistics systems and efficient purchasing practices. Local competitors, recognizing the threat posed by Walmart, quickly responded in order to protect their market share and profitability.

By responding rapidly, these local competitors hoped to mitigate the negative impact of Walmart's entry into their communities and maintain their customer base.