Wal-Mart was one of the most successful firms of the 1970s and 1980s. Much of Wal-Mart's success can be credited to its expansion strategy: they rushed to open the first discount store in small towns that could only support one discount store. In the language of game theory Select one:
a. Wal-Mart was a dominant firm
b. Wal-Mart made empty threats
c. Wal-Mart employed a maximin strategy
d. Wal-Mart employed a preemptive strategy

The correct answer is letter "D": Wal-Mart employed a preemptive strategy.

Explanation:

Game Theory is a branch of Economy that studies the decisions in which an individual could succeed if he or she takes into account the decisions of the rest of the participants involved in the event. Game Theory has also been applied for subjects such as Mathematics, Managements, Psychology or even Biology.

In the game theory, the Preemptive Strategy is implemented when individuals take a step before other participants in an attempt of having a favorable outcome of the situation. They lead the event using creativity. Thus, Wal-Mart used the preemptive strategy by opening stores in small towns that supported only one discount store.

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