Final answer:
Walmart is able to lower the cost of doing business through economies of scale, an efficient supply chain, and strong negotiating power.
Step-by-step explanation:
Walmart is able to lower the cost of doing business through various strategies:
- Economies of scale: Walmart's large size allows it to buy products in bulk at lower prices, reducing their overall costs. This enables them to offer products to customers at lower prices.
- Efficient supply chain: Walmart has a highly efficient supply chain system that minimizes inventory costs and reduces transportation expenses. This helps them keep their costs down.
- Negotiating power: Walmart has strong negotiating power with its suppliers, allowing them to secure better deals and lower prices, which in turn helps them lower the cost of doing business.