Cost leadership is a sustainable source of competitive advantage only if no barriers exist that prevent competitors from achieving the same low costs.

Question

Quizplus · Accepted Answer

Cost leadership can still be a sustainable source of competitive advantage even with barriers, as these barriers (e.g., economies of scale, proprietary technology, access to raw materials) can actually protect the cost leader from competitors achieving the same low costs.

Cost Leadership Is a Sustainable Source of Competitive Advantage Only