A cost leadership strategy can be at risk of obsolescence of the basis of the cost advantage.

Name: A cost leadership strategy can be at risk of obsolescence of the basis of the cost advantage.
Brand: Quizplus
Rating: 4.8 (30 reviews)

Question

Quizplus · Accepted Answer

Other firms may develop new ways of cutting costs, leaving the old cost leaders at a significant disadvantage. The older cost leaders are often locked into their way of competing and are unable to respond to the newer, lower-cost means of competing. This is what happened to the U.S. auto industry in the 1970s.

A Cost Leadership Strategy Can Be at Risk of Obsolescence