A cost leadership strategy is most appropriate when pursued concurrently by a number of firms in the same industry with approximately the same market share.

Question

Quizplus · Accepted Answer

A cost leadership strategy is most effective when pursued by a single firm in an industry with lower market share, as it allows the firm to have a competitive advantage by offering lower prices than its competitors. If multiple firms pursued a cost leadership strategy in the same industry with approximately the same market share, it would lead to price wars and decreased profitability for all firms involved. In this scenario, a differentiation strategy may be more appropriate for firms to differentiate themselves and gain a competitive advantage.

A Cost Leadership Strategy Is Most Appropriate When Pursued Concurrently