In this week's journal entry, you are asked to reflect on the concept of economies of scale. There are many ways to define economies of scale, but the most straightforward explanation is as follows:

The more you make of something, the less it costs.

Walmart is truly a behemoth in the retail industry; aside from Amazon, there are few competitors that have become such dominant forces in the marketplace.

• How does Walmart relate to the concept of economies of scale?
• Why is it a distinct competitive advantage to achieve economies of scale?
• What barriers to entry exist for companies attempting to enter the same industry as Wal-Mart?
• How might economies of scale pose a threat to existing smaller competitors? Look around your own community. Has Walmart had an impact on smaller businesses in your area?