A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by ○ outproducing rivals and thus having more available units for sale. O maintaining the present price and using the lower-cost edge to earn a higher profit margin on each unit sold. ○ underpricing rivals and attracting quality-sensitive buyers in great enough numbers. ○ spending heavily on advertising to promote its cost advantage to build strong customer loyalty. ○ going all out to use its cost advantage to capture a dominant share of the market.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by
○ outproducing rivals and thus having more available units for sale.
O maintaining the present price and using the lower-cost edge to earn a higher profit margin on each unit sold.
○ underpricing rivals and attracting quality-sensitive buyers in great enough numbers.
○ spending heavily on advertising to promote its cost advantage to build strong customer loyalty.
○ going all out to use its cost advantage to capture a dominant share of the market.
Transcribed Image Text:A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by ○ outproducing rivals and thus having more available units for sale. O maintaining the present price and using the lower-cost edge to earn a higher profit margin on each unit sold. ○ underpricing rivals and attracting quality-sensitive buyers in great enough numbers. ○ spending heavily on advertising to promote its cost advantage to build strong customer loyalty. ○ going all out to use its cost advantage to capture a dominant share of the market.
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