Factors That Lead to a Low-Cost Position Also Provide Substantial

question 66

True/False

Factors that lead to a low-cost position also provide substantial entry barriers to substitute and new products as is demonstrated by the retailer,Aldi,whose focus on minimizing costs across the entire operation permits it to position well against competitors such as Walmart.

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Definitions:

Immediate Market

A marketplace or environment where transactions occur directly and without delay, allowing for the quick exchange of goods or services.

Industry

A sector of the economy that includes businesses and organizations that produce similar goods or services.

Economic Costs

The sum of explicit and implicit costs which represent the total opportunity costs of resource utilization in the production of goods or services.

Opportunity Costs

The loss of potential gain from other alternatives when one alternative is chosen.