Low cost leaders depend on capabilities readily available to others in the industry such as access to scarce raw materials,large market share,or a high degree of capitalization.

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Low cost leaders usually depend on unique capabilities that are not readily available to others in the industry. These could be proprietary technology, efficient processes, or unique cost structures. Access to scarce raw materials or large market share may not necessarily provide a sustainable cost advantage, as competitors can also try to acquire these resources. High degree of capitalization can be helpful, but it is not the only factor that determines low cost leadership.

Low Cost Leaders Depend on Capabilities Readily Available to Others