A low-cost leader's basis for competitive advantage is
A)lowest possible prices for comparable products.
B)a low-cost/moderate price approach to gain the biggest market share.
C)high buyer switching costs.
D)meaningful lower overall costs than rivals on comparable products.
E)higher unit sales than rivals.

Question

Quizplus · Accepted Answer

A low-cost leader's basis for competitive advantage is having lower overall costs than rivals on comparable products, which allows them to offer lower prices while still making a profit. This can be achieved through various strategies such as efficient operations, economies of scale, and low overhead costs. Option A and B are related to pricing but do not capture the low-cost leader's overall cost advantage. Option C is unrelated to low-cost advantage. Option E may be a result of having lower prices, but it does not explain how the low-cost leader achieved its cost advantage.

A Low-Cost Leader's Basis for Competitive Advantage Is