ADVANTAGES

Being the low cost provider of a good or service can be aquick path to gaining more business or market share than your competitors. Butthis strategy has serious risks. Certainly you will need a lower labor,materials or overhead cost. Unless you have deep pockets and plan to driveyour competition from the field. Even then you may find that your competitorsare willing to cut prices in response. After all you can not expect them tolet you take their customers away without a fight. So if you go down this pathit would be better to be certain that you truly do have lower costs.

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