Under which condition would a cost leadership strategy be especially effective?
A) when there are many ways to achieve product differentiation that have value to buyers
B) when most buyers use the product in different ways
C) when buyers incur high costs in switching their purchases from one seller to another
D) when buyers are small and have little power to bargain down prices
E) when the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers

Question

Quizplus · Accepted Answer

A cost leadership strategy is especially effective when the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers. In this situation, buyers are likely to be price-sensitive and will choose the seller offering the lowest price, making cost leadership a key competitive advantage. Other factors such as product differentiation, buyer switching costs, and buyer power may not play a significant role in this scenario.

Under Which Condition Would a Cost Leadership Strategy Be Especially