Low-cost leaders who have the lowest industry costs are likely to: have out managed rivals in finding ways to perform value chain activities more cost-effectively. be considering exiting the current product market and use their competitive low-cost strength to gain a competitive advantage in other product arenas. be favorites to win the game of strategy in the long run. understand that driving costs to the lowest possible level is the only way to sell cheap products to consumers. understand that they have lower bargaining power with suppliers than rivals who employ a different strategy.