Cost advantages matter most in industries where competition is based on price and price determines the buying decision of the customer. Most of the commodities will fall in this category.
Cheaper processes, better location and unique resources can create cost advantages. Cost advantage due to cheaper process can be copied by others so it is a very short lived advantage. Some of the business co-locating with their customer provide location based advantages. Cement companies and granite quarries that are closer has great advantages as the cost of transportation is cheaper and they tend to have lower cost than other that need to transport long distances.
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