Which of the following statements is accurate? Group of answer choices A cost-leadership competitive strategy increases the threat of new entrants by lowering cost-based barriers to entry. Firms with a low-cost position can reduce the threat of rivalry in an industry. Cost leaders are especially vulnerable to substitute products. Cost leaders are especially vulnerable to the threat of suppliers.

Question

Business

Joyce Lawrence

26 January, 02:17

Which of the following statements is accurate? Group of answer choices A cost-leadership competitive strategy increases the threat of new entrants by lowering cost-based barriers to entry. Firms with a low-cost position can reduce the threat of rivalry in an industry. Cost leaders are especially vulnerable to substitute products. Cost leaders are especially vulnerable to the threat of suppliers.

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Javon Chaney · Answer 1

The correct statement is expressed by option B - Firms with a low-cost position can reduce the threat of rivalry in an industry.

Explanation:

Firms with a low-cost position can reduce the threat of rivalry in an industry based on these reasons:

Firstly, these firms can decide to set their prices to be the same as the prices of higher-cost competitors.

Secondly, low-cost firms can decide to price their goods or services a little bit below the prices of their high-cost rivals.