How Valuable a Low-Cost Leader's Cost Advantage Is Depends on

question 52

Multiple Choice

How valuable a low-cost leader's cost advantage is depends on

• A)whether it is easy or inexpensive for rivals to copy the low-cost leader's methods or otherwise match its low costs.
• B)how easy it is for the low-cost leader to gain the biggest market share.
• C)the aggressiveness with which the low-cost leader pursues converting the cost advantage into the absolute lowest possible costs.
• D)the leader's ability to combine the cost advantage with a reputation for good quality.
• E)the low-cost leader's ability to be the industry leader in manufacturing innovation so as to keep lowering its manufacturing costs.

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Definitions:

Emergent

The process of novel patterns, properties, or structures developing in complex systems that could not be predicted from earlier states.

Clarity

The quality of being clear, understandable, and precise.

Crisis

A critical or decisive situation or period, especially one that potentially poses instability or great danger.

Social Learning Theory

Social learning theory posits that people learn new behaviors, attitudes, and values by observing and imitating the actions of others.