Final answer:
Stores streamline operations to keep costs down by optimizing activities like production, facility management, and employment. Strengthening competition and minimizing risks also help maintain low prices. Bundling products can further reduce costs and offer consumer advantages, contributing to a competitive pricing strategy.
Step-by-step explanation:
This method allows stores to streamline their operations, helping to keep down costs. Streamlining can involve a range of activities such as deciding whether to expand or reduce production, open new factories or sales facilities or close them, hire workers or to lay them off, and either start selling new products or stop selling existing ones. By optimizing these processes, stores can operate more efficiently and provide customers with the items they want at prices that are lower than anywhere else.
Stores might also engage in practices such as minimizing the risk of exchange rate fluctuations and encouraging competition. This can contribute to maintaining prices that are low and stable, which is beneficial for attracting and retaining customers. An additional approach that businesses can adopt is bundling, which involves selling multiple products or services together at a discounted rate, offering an advantage for consumers and enabling businesses to sell more.
By streamlining their operations and employing strategies to minimize costs and encourage competition, stores can successfully sell products at a competitive edge, much like how large retailers such as Amazon have succeeded by optimizing their production model and cost structure to offer lower prices.