Question

To achieve a low-cost edge over rivals, a firm's cumulative costs across its overall value chain must be lower than competitors' cumulative costs. One major way to achieve this is to revamp the firm's overall value chain system to eliminate or bypass some cost-producing activities. The other major way to achieve this is to

Answer 1

Another way to gain this low-cost advantage over competitors is for the company to increase the value of its product compared to its competitors. Increasing the value does not mean increasing the price, but increasing the added benefits to the product. This product differentiation strategy will make it more attractive to consumers and thus help the company in market gain and competitive advantage.