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How does a firm become a low cost price leader

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Reference no: EM131536332

Question:

How would a low-cost price leader enforce its leadership through implied threats to a rival? How does a firm become a "low cost" price leader? Discuss the specific type of market structure that implied threat strategy can be adapted.

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These firms when they act on their own, that is by initiating types of policies and business decisions that are more or less quite customer friendly, will be able to send out a kind of competitive message to any business rival and the way in which the rivals end up responding to these new competitive business decisions and policies will affect the firm that is low cost and which is looking to send out some kind of warning message to its foes in the business world.

Reference no: EM131536332

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