Wal-Mart makes bulk purchases from its vendors and hence it is able to get better deals than its competitors. This allows Wal-Mart to offer greater discounts to its customers. In this case, Wal-Mart benefits from _____.

Respuesta :

Answer:

Economies of Scale

Explanation:

The reason is that the cost advantage that the company has attained is because of its large scale production and other organization operations which helps the company to control its costs. As Walmart is the one of the biggest organization. The company can easily influence its supplier behavior as the company has greater bargaining power due to its size. As a result the company will be able to lower its costs to its large scale purchasing which is one of the example of the economies of scale.