COMPETITIVE STRENGTHS OF ALOW-COST PROVIDER STRATEGY

COMPETITIVE STRENGTHS OF ALOW-COST PROVIDER STRATEGY

• Provides defenses against competitive forces
  • RIVAL COMPETITORS - Better positioned to compete offensively on basis of price
  • BUYERS - Better protected from negotiating power of large customers
  • SUPPLIERS - More insulated than competitors from powerful suppliers
  • POTENTIAL ENTRANTS - Low-cost provider’s pricing power is a significant entry barrier
  • SUBSTITUTES - Better positioned to use low price as a defense against substitutes

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