A low-cost leader may create entry barriers to potential entrants by continually improving its levels of efficiency.

Question

Quizplus · Accepted Answer

A low-cost leader can create entry barriers by continually improving its levels of efficiency, making it difficult for potential entrants to compete on price. This can be achieved through various measures such as economies of scale, streamlined supply chains, and optimized production processes. By keeping its costs low, a low-cost leader can maintain a price advantage over its competitors and discourage new entrants from entering the market.

A Low-Cost Leader May Create Entry Barriers to Potential Entrants