Low Cost Product

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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" has a significant impact, so an analyst should put more weight into it. 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.