Low Cost Product

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Should do better an in economic recession since goods are priced low. Low cost provides significant barriers to entry if that company is the only low cost product among many other higher cost products. Also, companies that save businesses money will also 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" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.