Alternatives for translating low-cost advantage over rivals

Question

Illustrates the alternatives for translating low-cost advantage over rivals?

Answer 1

A company has two choices for translating a low-cost advantage over rivals into attractive benefit performance:

Option A:

Make use of the lower-cost edge to under-price competitors and attract price-sensitive buyers in great numbers to enhance total benefits.

Option B:

Maintain the current price, be satisfied with the present market share and use the lower-cost edge to receive superior profit margin on each unit sold.