The principal dangers of a cost leadership approach include all of the following except
A) powerful buyers.
B) technological change.
C) imitation of production techniques.
D) changes in consumer tastes.
E) rivals lowering their costs.

Question

Quizplus · Accepted Answer

The principal dangers of a cost leadership approach are powerful buyers, technological change, imitation of production techniques, and rivals lowering their costs. Changes in consumer tastes do not directly affect a cost leadership strategy as consumers may still choose to purchase based on the lowest price available. However, a cost leader may miss out on potential revenue from consumers that are willing to pay more for unique features or branding.

The Principal Dangers of a Cost Leadership Approach Include All