Even where competitive advantage is not primarily based on cost, a firm needs to be reasonably cost-efficient compared to close competitors.

Question

Quizplus · Accepted Answer

While competitive advantage can be based on factors other than cost (such as quality, innovation, or customer service), a firm still needs to be cost-efficient in comparison to competitors in order to remain competitive in the market. Otherwise, they may be outpriced and lose market share.

Even Where Competitive Advantage Is Not Primarily Based on Cost