Convincing rivals not to enter a price war, protection from customer pressure to lower prices, and the ability to better withstand cost increases from suppliers characterize which type of competitive strategy?
A) overall cost leadership
B) differentiation
C) differentiation focus
D) cost leadership focus

Question

Quizplus · Accepted Answer

Overall cost leadership is a competitive strategy that focuses on achieving the lowest possible costs in order to gain a competitive advantage. This can be achieved through economies of scale, efficient production processes, and low input costs. By having the lowest costs, a company can set prices below its competitors and still maintain a profit margin. This can make it difficult for rivals to enter the market or to compete on price. Additionally, overall cost leadership can help a company to withstand cost increases from suppliers, as it has a larger margin to absorb these costs.

Convincing Rivals Not to Enter a Price War, Protection from Customer