Walmart Initially Used a Focused Cost-Leadership Strategy to Compete Only

question 71

Multiple Choice

Walmart 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 Walmart's attack
• D) rapid; had the resources and flexibility compete against Walmart

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Definitions:

Investment Opportunity

A financial investment or asset that has the potential to yield returns or profits.

Residual Income

The income that remains after deducting all required costs of capital from the operating income, used as a performance measure.

Minimum Required Rate

is the lowest return or yield that an investor is willing to accept on an investment, considering the risk involved.

Average Operating Assets

This term refers to the average value of the assets used in the operations of a business over a specific period, usually calculated to assess performance.