One way a low-cost leader can translate its low-cost advantage over rivals into attractive profit performance is by
a. using its lower cost edge to underprice competitors and attract price sensitive buyers in great enough numbers to increase total profits.
b. offering buyers a frills free product and selling it at a price that enables the company to earn a big profit margin per unit sold.
c. using deep price cuts to steal customers from rivals an ever larger sales volume is the most reliable means of achieving attractively high profit margins and return on investment.
d. having more cost drivers in its value chain than other low cost rivals so that it can underprice them and over time capture the biggest market share in the industry