What are the possible options for addressing a supplier-related cost disadvantage?

The focus on addressing a supplier-related cost disadvantage primarily revolves around managing supplier relationships and costs more effectively. Among the options, negotiating more favorable prices with suppliers stands out as the most appropriate action. This approach directly targets the source of the cost disadvantage by seeking better terms from suppliers, which can reduce overall production costs.

Negotiating with suppliers can involve discussing bulk purchase discounts, more flexible payment terms, or collaboration on logistics to lower costs. By lowering the costs of inputs, a company can maintain or enhance its profit margin, which is essential for competitive positioning.

In contrast, cutting selling prices to increase market share does not directly address the underlying cost issue—it may temporarily boost sales but could harm profitability if costs remain high. Shifting into the production of substitute products may not relate directly to addressing supplier costs and might involve new investments and risks. Lastly, changing from a low-cost leadership strategy to a differentiation strategy could complicate matters further, especially if the goal is simply to alleviate cost disadvantages rather than altering the core business strategy. Thus, focusing on negotiating with suppliers is a targeted method for overcoming supply-related cost challenges.