The competitive strategy of cost leadership allows a firm to outperform competitors by producing products or services:
A)With lowered quality standards,thus reducing overall costs.
B)In smaller operational units.
C)At lower cost achieved by increased productivity.
D)With attractive added features making the product more expensive,or "the cost leader".
E)That are heavily promoted and heavily warranted.

Question

Quizplus · Accepted Answer

The competitive strategy of cost leadership involves producing products or services at a lower cost achieved by increased productivity. This allows the firm to offer the products/services at a lower price compared to competitors while still maintaining profitable margins. Options A, D, and E do not align with the principles of cost leadership. Option B may not necessarily lead to cost savings and is not a defining characteristic of cost leadership.

The Competitive Strategy of Cost Leadership Allows a Firm to Outperform