Pressures for cost reduction are minimal in industries where major competitors are based in low-cost locations, where there is persistent excess capacity, and where consumers are powerful and face low switching costs.

Question

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In such industries, pressures for cost reduction are actually high because competitors in low-cost locations can offer lower prices, excess capacity can lead to price wars, and powerful consumers with low switching costs can easily switch to cheaper alternatives.

Pressures for Cost Reduction Are Minimal in Industries Where Major