Firstly, as the world’s largest retailer, Walmart has the dominant market power over suppliers and competitors. With its economies of scale, especially in terms of sales volume, Walmart shares the fixed costs over many products to control costs.
Secondly, Walmart has developed a variety of sound policies, principles and rules to guide and supervise employees as well as focus on customer service. For example, the Sundown Rule stipulates that employees should respond to all customers’ questions in a professional manner on the same day they receive the problem.
Thirdly, Walmart has a well-known brand name that is recognized as the largest retailer with the most stores worldwide. It also focuses on advertising through emails and flyers to attract customers’ attention.
Fourthly, Walmart uses a technology-leading information system for order tracking, customer relationship management, and sales in order to develop supply chain management.