While Smart Guard Inc. incurs $$500$ to manufacture a home security system, its competitor, EverSafe Systems, incurs $$450.$ However, the security systems produced by both the companies have been able to create the same value among customers. From the given scenario, it can be inferred that

Multiple Choice

Smart Guard has a competitive advantage over EverSafe Systems.

Smart Guard is a cost leader when compared to EverSafe Systems.

EverSafe Systems and Smart Guard share a differentiation parity.

EverSafe can charge a higher price than Smart Guard for its systems.

saved

There are several cost drivers that can be managed in order to establish a low$-$cost leadership advantage. One of the primary cost drivers is

Multiple Choice

$$ adding unique features that turn standard commodities into differentiated products.

combining experience$-$based learning and process innovation to move onto a steeper learning curve.

creating personalized customer service in order to minimize price sensitivity among customers.

shifting to small$-$scale production processes in order to create highly customized products.

saved

There are several cost drivers that can be managed in order to establish a low$-$cost leadership advantage. One of the primary cost drivers is

Multiple Choice

$$ adding unique features that turn standard commodities into differentiated products.

combining experience$-$based learning and process innovation to move onto a steeper learning curve.

creating personalized customer service in order to minimize price sensitivity among customers.

shifting to small$-$scale production processes in order to create highly customized products.