Final answer:
The offering of digital photo printing services by Walmart and Costco affects the digital photo printing market by increasing competition, expanding market reach, and impacting traditional photo printing businesses.
Step-by-step explanation:
The offering of digital photo printing services by Walmart and Costco affects the digital photo printing market in several ways.
Firstly, it increases competition in the market. With the entry of large discount stores like Walmart and Costco, there are now more options for consumers to get their photos printed. This competition drives down prices and encourages innovation in the printing services offered.
Secondly, it expands the market reach. By offering printing services, Walmart and Costco make photo printing more accessible to a wider range of customers. This can lead to increased demand for digital photo printing and growth in the overall market.
Lastly, it may impact traditional photo printing businesses. Smaller local print shops that relied on photo printing as their primary service may face increased competition and challenges in competing with the lower prices and convenience offered by Walmart and Costco.