A _____ strategy refers to increasing profit margins by keeping financial costs lower than those of competitors,while still maintaining price and quality at roughly the same level as competitors.

Question

Quizplus · Accepted Answer

Cost leadership refers to a strategy where a company keeps their financial costs lower than competitors while maintaining the same level of quality and price. This allows the company to have higher profit margins and potentially offer lower prices to customers, giving them a competitive advantage. The other choices, focus and cost differentiation, do not specifically address the goal of keeping financial costs lower than competitors. Routine is not a relevant term in this context.

A _____ Strategy Refers to Increasing Profit Margins by Keeping