Wal-Mart is the most obvious example of a company benefiting from economies of scale. As a dominant player in retailing, the company’s size provides it with enormous efficiencies that it uses to keep costs low. The size provides enormous efficiencies across its over 5000 stores worldwide. Wal-Mart has a ton of important information concerning consumer likes and dislikes and it spreads best practices across all its stores. (news.morningstar.com/classroom 2016)

1. Beyond the obvious economies of scale, which other sources of Cost Advantage do Wal-Mart leverage?
2. What approaches do you think Wal-Mart uses in “finding sources of differentiation”?