Firms focusing on cost leadership tend to

Question

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Firms pursuing a cost leadership strategy are focused on minimizing costs in order to offer lower prices to customers or achieve higher profit margins. Therefore, they tend to locate their manufacturing facilities in the lowest cost locations possible, typically in countries with lower labor costs or where raw materials are readily available. This allows them to minimize operating costs and maximize efficiency in their supply chain. Locating facilities close to the market would likely result in higher transportation costs, and selecting a high-cost location would directly contradict the objective of cost leadership.

Firms Focusing on Cost Leadership Tend to