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

Question

Quizplus · Accepted Answer

The basis for a low-cost leader's competitive advantage is having meaningfully lower overall costs than rivals on comparable products. This allows for the ability to offer lower prices while still maintaining profitability, which can attract price-sensitive customers and potentially gain market share from competitors who cannot match the low prices.

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