Question

In: Operations Management

please no plagiarism in this Explain how an overall cost leadership strategy enables a business to...

please no plagiarism in this

  1. Explain how an overall cost leadership strategy enables a business to address the five competitive forces in such a way that it can enjoy high levels of profitability.

Solutions

Expert Solution

The position, along with the low cost, allows the company to achieve average profits despite the intense competition. It protects the company from competition from competitors because low cost allows the company to win even its competitors, destroying profits through intense competition. The low price position also protects the company from influential buyers. Buyers can use energy to reduce costs only at the next most efficient manufacturer level. Low tariff locations provide greater flexibility to address the needs of influential suppliers to increase investment costs. Factors leading to lower tariff locations also provide significant barriers to economic entry of size and value advantages. Finally, the low tax position puts the company in a favorable position in terms of alternative products introduced by new and current competitors.


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