A company with a business-level strategy of cost leadership should pursue which of the following global expansion strategies?
A) Localization
B) Global standardization
C) International
D) Transnational
E) Simple

Question

Quizplus · Accepted Answer

A business-level strategy of cost leadership emphasizes on producing goods or services at low cost, which includes economies of scale, reducing expenses or implementing more efficient processes. The best global expansion strategy for this type of business-level strategy is global standardization, which involves offering standardized products or services worldwide to reduce costs, increase efficiency and achieve economies of scale. By having a standardized approach, a company can share production inputs, reduce research and development costs, and streamline the production process to drive down costs. Therefore, global standardization aligns well with the cost leadership strategy.

A Company with a Business-Level Strategy of Cost Leadership Should