How valuable a low-cost leader's cost advantage is depends on
A)whether it is easy or inexpensive for rivals to copy the low-cost leader's methods or otherwise match its low costs.
B)how easy it is for the low-cost leader to gain the biggest market share.
C)the aggressiveness with which the low-cost leader pursues converting the cost advantage into the absolute lowest possible costs.
D)the leader's ability to combine the cost advantage with a reputation for good quality.
E)the low-cost leader's ability to be the industry leader in manufacturing innovation so as to keep lowering its manufacturing costs.

Question

Quizplus · Accepted Answer

The value of a low-cost leader's cost advantage depends on whether other competitors can easily replicate or match their low costs. If competitors can do this, then the low-cost leader's advantage will be minimized. Therefore, the ease of imitation is a critical factor in determining the value of a low-cost leader's cost advantage.

How Valuable a Low-Cost Leader's Cost Advantage Is Depends on