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How would a low–cost price leader enforce its leadership through implied threats to a rival?
I need at least one original example.
Hi there, I would be more than happy to assist you with your homework question today!A low-cost price leader would enforce its leadership through implied threats to a rival basically through a bluff and through a strategic advantage. With a good strategic advantage over a rival organization in say, manufacturing costs, the low cost price leader could essentially rule the market although it is not necessarily on top of the game yet.
For example, when Walmart first began opening more and more stores it was rivaled by many stores of that type. However, through cutting costs and maximizing profits while lower costs for consumers, the company dominated.Hope this helps!
Can you provide a reference material?