A cost leader can maintain its power by all of the following except
A) continually increasing its level of efficiency.
B) negotiating tough short-term contracts with suppliers.
C) maintaining lower prices than its competitors.
D) selling to a large number of buyers.

Question

Quizplus · Accepted Answer

Negotiating tough short-term contracts with suppliers may not be a sustainable strategy for a cost leader since it could damage supplier relationships and lead to instability in the supply chain. A cost leader should strive to build long-term partnerships with suppliers and work together to improve efficiency and reduce costs.

A Cost Leader Can Maintain Its Power by All of the Following