For most firms,a niche cost-leadership strategy is difficult to implement and sustain because scale is so closely linked to cost advantage.

Question

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A niche cost-leadership strategy requires achieving a cost advantage over competitors, which is typically linked to achieving economies of scale. However, operating in a niche market may limit the firm's ability to achieve the necessary scale to sustain a cost advantage. As a result, implementing and sustaining a niche cost-leadership strategy can be challenging for many firms.

For Most Firms,a Niche Cost-Leadership Strategy Is Difficult to Implement