Final answer:
A low-cost leader can boost profit performance by expanding market share and investing in research and development to maintain a competitive advantage and attract more customers.
Step-by-step explanation:
A low-cost leader can translate its low-cost advantage over rivals into superior profit performance primarily by expanding market share. By leveraging its ability to produce goods more inexpensively, the low-cost leader can attract a larger customer base through competitive pricing, while maintaining profitability. An expansion of market share also increases the firm's influence within the industry and can deter new competitors from entering the market.
Furthermore, investing in research and development is a strategic approach for a low-cost leader to maintain its competitive edge. This is because innovation may lead to even lower production costs and the development of new products that meet consumer demands, which can help in securing a temporary edge over competitors and earning above-normal profits.