A company that pursues ________ leadership will react much more strongly to a competitor's ________ manufacturing breakthrough than to the same competitor's advertising increase.
A) high-cost; cost reducing
B) low-cost; cost reducing
C) service; cost reducing
D) high-cost; efficiency improving
E) market share; efficiency improving

Question

Quizplus · Accepted Answer

A company that pursues low-cost leadership focuses on reducing costs to offer products at a lower price than competitors. Therefore, a competitor's manufacturing breakthrough that leads to cost reduction poses a threat to the low-cost leader's competitive advantage. On the other hand, an increase in advertising does not directly affect the low-cost leader's cost leadership position.

A Company That Pursues ________ Leadership Will React Much More