Reference no: EM132561129

Walmart is the most common low-active price strategy company. They use this approach to focus on offering everyday low prices. The main advantage of this strategy is that it is simple for the company and the consumer. The company does not have to incur higher costs on managing and trying to analyze a complex cost model and can save time and money with a more manageable advertising plan.

In regards to the customer, they can count on the low price to be available when they are ready to make the purchase, not have to look for discount promotions that expire, and not worry about the small print about items that are excluded from the promotion.

Question 1: While they do seem to have the lowest costs, they still need to make a profit or have margins. Which products or product lines they will happen to?