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 are able to keep their prices low, which gives them an advantage in dealing with powerful suppliers and buyers. This is because they are less vulnerable to price changes and have more bargaining power. While cost leaders may still make a profit, their margins are typically lower than those of differentiators, who can charge higher prices for their unique products or services. Cost leadership does not necessarily involve inimitable production methods or having higher brand loyalty, and while investors may appreciate a company's ability to keep costs low, being a cost leader does not guarantee investor preference.

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