A cost-leadership competitive strategy helps reduce the threat of entry by creating cost-based barriers to entry.

Question

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Cost-leadership strategy aims to offer products or services at a lower cost than competitors, which can create cost-based barriers to entry for new competitors. This can make it difficult for new entrants to achieve economies of scale or price competitiveness, which can reduce the threat of entry.

A Cost-Leadership Competitive Strategy Helps Reduce the Threat of Entry