How would a low-cost price leader enforce its leadership through implied threats to a rival?

Pricing and Competition
Name
Institution
Pricing and Competition
Low-cost price leaders enforce their leadership through assumed threats to their rivals basically through bluffs and through the use of strategic advantage. Once a low cost price organization gains a strategic advantage over a competitor, the low cost price leader becomes a force to reckon with even though it might not be at the top of the market (Nielson, 2013).
Ideally, an organization becomes a low cost price leader once it realizes that it cannot survive in the market without reviewing its prices to match those of its competition. Low cost price leaders are organizations that usually face high competition especially in their expansion bid. With this realization, the organizations then embark on a strategy where they cut costs while at the same time maximizing costs. This means that an organization that wants to become a low cost price leader would have to look for strategies on how to lower its operational costs in order to ensure that its prices are maximized (Nielson, 2013).
There are various ways through which an ...