Principal sources of competitive advantage

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Your friend manages a retailer that has a history of superior profitability. She believes that one of the principal sources of competitive advantage for her enterprise are low labor costs. The low labor costs are due to her hiring of minimum-wage workers, the decision not to give them any benefits (such as health benefits), and her consistent opposition to unionization at the company (the workforce is not unionized). Although she acknowledges that this approach does lead to high employee turnover, she argues that the jobs are low skilled, and that it is easy to replace someone who leaves.

Reference no: EM132980457

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