Cost leadership is most appropriate when
A) the power of buyers is low and barriers to entry are high.
B) economies of scale are relatively unimportant in manufacturing products.
C) customers have very different needs and uses for the industry's products.
D) product innovation is the key competitive factor.
E) industry rivalry is high and customers are very sensitive to prices.

Question

Quizplus · Accepted Answer

Cost leadership is most appropriate when industry rivalry is high and customers are very sensitive to prices because it allows a company to compete effectively by offering lower prices than competitors, thus attracting price-sensitive customers.

Cost Leadership Is Most Appropriate When