Which of the following is an advantage of cost leadership?
A) It makes a firm following this strategy well positioned to withstand price competition from rivals.
B) The need for high sales volume requires low upfront investments in production and/or distribution capacity.
C) In markets that involve a lot of brand loyalty, cost leadership companies command the largest share in the market.
D) Low expenditure on market research helps firms following the cost leadership strategy to detect important environmental changes at a lower cost.
E) Highly fragmented markets offer firms following this strategy greater opportunities to attract a large segment of customers.

Question

Quizplus · Accepted Answer

Cost leadership allows a firm to produce goods or services at a lower cost than competitors, enabling it to withstand price competition by maintaining profitability even when prices are driven down.

Which of the Following Is an Advantage of Cost Leadership