Question

How would a low-cost price leader enforce its leadership through implied threats to a rival? provide at least one example of such a strategy?

Answer 1

Low-cost price leaders normally employ such strategies as price-matching to direct more sales to them and away from rivals. This is the used by Wal-Mart as it redirects sales to it self from rivals like Aldi, best -buy and other retailer. Amazon employs this strategy as well by asking customers to report lower prices online.