Lower costs lead to higher profits for Furniture company. A low cost leader can undercut rivals on price… … "Cost Advantages (Furniture company)" has a significant impact, so an analyst should put more weight into it. "Cost Advantages (Furniture company)" will have a long-term positive impact on the this entity, which adds to its value. "Cost Advantages (Furniture company)" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.