Question

Which of the following statements is accurate? Group of answer choices A cost-leadership competitive strategy increases the threat of new entrants by lowering cost-based barriers to entry. Firms with a low-cost position can reduce the threat of rivalry in an industry. Cost leaders are especially vulnerable to substitute products. Cost leaders are especially vulnerable to the threat of suppliers.

Answer 1

Answer:

The correct statement is expressed by option B - Firms with a low-cost position can reduce the threat of rivalry in an industry.

Explanation:

Firms with a low-cost position can reduce the threat of rivalry in an industry based on these reasons:

Firstly, these firms can decide to set their prices to be the same as the prices of higher-cost competitors.

Secondly, low-cost firms can decide to price their goods or services a little bit below the prices of their high-cost rivals.