• Raw materials and components, capacity utilization, and product design and production technology
• Economies of scale and learning and experience effects
• Bargaining power with suppliers and supply chain efficiency
• Selling direct to consumers, advertising, and administrative activities
• Outsourcing and vertical integration

concentrated attention on a narrow piece of the overall market--the target segment or market niche can be defined by geographic uniqueness, by specialized requirements in using the product, or by special product attributes that appeal only to those buyers who comprise the

either using its low-cost edge to underprice competitors and attract price sensitive buyers in large enough numbers to increase total profits or else by refraining from price-cutting and using the low-cost advantage to earn a bigger profit margin on each unit sold.