Getting carried away with overly aggressive price-cutting to win sales and market share away from rival firms–higher unit sales and market shares do not automatically translate into higher total profits
Not being alert to the risks that an innovative rival may discover an even lower lower-cost value chain approach or that the firm’s cost advantage can be undermined by cost-saving technological breakthroughs
Failing to emphasize avenues of cost advantage that can be kept proprietary or that are very costly and/or time-consuming for rivals to copy
Pursuing low costs so zealously that a company’s product offering ends up being too features-poor to generate buyer appeal
Failing to slash price far enough below what rivals are charging to achieve dramatically large gains in sales volumes and market share
