What are the major sources of competitive advantages of an organization that can be effectively developed to support a cost leadership strategy for competing in the market?

Question

Quizplus · Accepted Answer

The Answer is To answer this question, it is necessary for students to find out how an organization can strategize to lower its fixed costs, how it can attain economy of scale, how it can avoid marginal customer accounts, etc.
The major sources of competitive advantages that can be developed by adopting a cost leadership strategy are economies of scale, which refers to the cost saving attributed to decreased fixed costs per unit while the volume of production and sales increase; learning curve, which represents cost saving attributed to reduction of costs as a result of fewer mistakes and an improvement in problem solving by repetition of operations; and, last but not least, technological improvement, which is cost saving attributed to improved efficiency through innovation of the production process.

What Are the Major Sources of Competitive Advantages of an Organization