As compared to a differentiator, the cost leader has the advantage over its rivals of
A) making higher profit margins.
B) being better able to withstand the negative influence of powerful suppliers and buyers.
C) having inimitable production methods.
D) enjoying higher brand loyalty.
E) being preferred by investors.

Question

Quizplus · Accepted Answer

Cost leaders can better withstand the pressures from powerful suppliers and buyers because they operate at lower costs, which allows them to maintain profitability even when facing price pressures from suppliers or buyers. This advantage comes from their ability to absorb cost increases or reduce prices to keep customers, without significantly impacting their profit margins.

As Compared to a Differentiator, the Cost Leader Has the Advantage