Francisco Martínez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Wal-Mart's entry into Mexico, Mr. Martínez notes, "I buy 20,000 plastic toys, and Wal-Mart buys 20 million. Who do you think gets them cheaper?" Which strategic principles are evident in this comment?
A) Wal-Mart's buyer power and cost leadership
B) Wal-Mart's barriers to entry and differentiation
C) Wal-Mart's loose bricks and switching costs
D) Wal-Mart's focused differentiation and supplier power
E) Wal-Mart's discount policies for customers
Answer: A