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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The factors that lead to a low-cost position also provide a substantial entry barriers position with respect to substitute products introduced by new and existing competitors. The extreme focus on minimizing costs across its operations makes Aldi less vulnerable to substitutes, such as discount retailers like Walmart and dollar stores.

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