Which of the following is a disadvantage of a cost leadership strategy?
A) The strategy is too easily imitated.
B) It attempts to stay ahead of the competition may lead to gold plating.
C) Cost differences increase as the market matures.
D) Producers are more able to withstand increases in suppliers' cost.

Question

Quizplus · Accepted Answer

A cost leadership strategy can be easily imitated by competitors, which can erode the competitive advantage it provides. This makes it a significant disadvantage as maintaining a cost leadership position requires continuous improvement and cost reduction efforts to stay ahead of competitors who may adopt similar strategies.

Which of the Following Is a Disadvantage of a Cost