Big Lots is able to compete against Wal-Mart with a cost leadership strategy because of its strengths in highly disciplined merchandise cost and inventory management system. This illustrates the
A) ability of Big Lots to imitate Wal-Mart's tightly integrated activity map.
B) ability to survive against a dominant competitor by changing from a broad competitive scope to a narrow competitive scope.
C) fact that support activities in the firm can provide sources of cost reduction.
D) importance of effective use of primary activities in the value chain.

Question

Quizplus · Accepted Answer

The fact that Big Lots is able to compete with Wal-Mart through cost leadership strategy indicates that the support activities in the firm provide sources of cost reduction. Big Lots has strengths in highly disciplined merchandise cost and inventory management system, which are support activities that help the firm to reduce costs and improve efficiency. This suggests that cost reduction can be achieved not only through primary activities, but also through support activities in the value chain.

Big Lots Is Able to Compete Against Wal-Mart with a Cost