A low-cost leader's basis for competitive advantage is
A) lower prices than rival firms.
B) using a low cost/low price approach to gain the biggest market share.
C) high buyer switching costs.
D) meaningfully lower overall costs than competitors.
E) higher unit sales than rivals.

Question

Quizplus · Accepted Answer

A low-cost leader's competitive advantage is based on having lower overall costs than competitors, which allows them to offer lower prices than their competitors while still maintaining profitability. This cost advantage can come from various sources, such as superior supply chain management, efficient operations, economies of scale, or technology. The other options (A, B, C, E) are not necessarily the basis for a low-cost leader's competitive advantage, although they may be tactics used by firms pursuing a low-cost strategy.

A Low-Cost Leader's Basis for Competitive Advantage Is