Low cost can enable enterprises to retain existing customers by lowering prices, reduce the threat of substitutes and increase the switching cost of customers using substitutes.

Wal-Mart's low-cost leading strategy can be reflected from product procurement, logistics and distribution to the control of operating costs. Direct and unified procurement from the factory has scale effect, reduces procurement costs, cooperates strategically with suppliers, enjoys data, helps suppliers reduce costs, and reduces operating risks and operating expenses to a certain extent. Establish an efficient logistics distribution center to reduce the cost of logistics distribution. Commodity circulation is fast, turnover is fast and efficiency is high.