An organization that is using the cost leadership approach would
A) incur costs for innovative R&D.
B) provide products at a higher cost than competitors.
C) focus on productivity through efficiency improvements.
D) bring products to market rapidly.
E) use a skimming pricing policy.

Question

Quizplus · Accepted Answer

An organization using the cost leadership approach aims to provide products at a lower cost than competitors, which requires a focus on productivity through efficiency improvements. Incurring costs for innovative R&D (A), providing products at a higher cost than competitors (B), bringing products to market rapidly (D), and using a skimming pricing policy (E) are not congruent with this approach.

An Organization That Is Using the Cost Leadership Approach Would