A low-cost leader's basis for competitive advantage is
A)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)lower overall costs than competitors.
E)higher unit sales than rivals.

Question

Quizplus · Accepted Answer

A low-cost leader's competitive advantage is based on lower overall costs than their competitors. This allows them to offer lower prices while still maintaining acceptable profit margins. Lower prices can attract price-sensitive customers, leading to increased sales volume and market share. However, the foundation of this strategy is reducing costs across the entire value chain to maintain profitability while offering lower prices.

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