Lower costs lead to higher profits for **Spa **. A low cost leader can undercut rivals on price… … "Cost Advantages (Spa )" has a significant impact, so an analyst should put more weight into it. "Cost Advantages (Spa )" 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. "Cost Advantages (Spa )" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it.