The main risk of using the integrated cost leadership/differentiation strategy is
A) if the firm fails to produce somewhat differentiated products at low costs.
B) if the firm's products are too differentiated for the mass market.
C) if the firm's products are too expensive for the target market.
D) if competitors are able to imitate its strategy.

Question

Quizplus · Accepted Answer

The main risk of using the integrated cost leadership/differentiation strategy is if the firm fails to produce somewhat differentiated products at low costs. This is because this strategy relies on being able to offer something unique or different to customers while also keeping costs low. If the firm cannot achieve this balance, it risks losing customers to competitors who can offer lower prices or more differentiated products. The other options presented (B, C, and D) are also potential risks, but they are not the main risk of this strategy.

The Main Risk of Using the Integrated Cost Leadership/differentiation Strategy