Low Cost Product

Should do better in an economic recession since goods are priced low. Low cost provide significant barriers of entry, if that company is the only low cost product amongst many other higher cost products. Also, companies that save businesses money will benefit when businesses have to cut cost over time, either through greater efficiency or cheaper goods.

For example: rail transportation has a cost advantage over trucking operations, which have an advantage over air transportation. … "Low Cost Product" will have a long-term positive impact on the this entity, which adds to its value. This statement will lead to an increase in profits for this entity. "Low Cost Product" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.