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Wal-Mart, the largest retail chain in the world, had grown because of a wide range of competitive advantages, such as its sophisticated use of information technology to keep track of and reorder items, “just-in-time” shipments of merchandise from distribution centers that minimized costly in-store inventory,1 and the sheer economies of scale it achieved compared to its rivals.2 Wal-Mart also exploited economies of density to make the most of its centralized distribution hubs.3 These advantages, combined with the “Every Day Low Prices” that attracted customers, enabled Wal-Mart to sell over $421 billion to its target market, of which...

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