A company pursuing a cost-leadership strategy does which of the following?
A) Includes substandard components in the product to keep costs low
B) Chooses strategies that keep costs as low as feasible and are effective
C) Keeps advertising expenses at a maximum
D) Relies on patent protections to keep costs low
E) None of these

Question

Quizplus · Accepted Answer

A company pursuing a cost-leadership strategy focuses on keeping costs as low as feasible while maintaining acceptable quality levels. This may involve using efficient processes, reducing waste, optimizing supply chain management, and other tactics to achieve cost savings without compromising quality. Including substandard components in the product or relying on patent protection are not considered effective or sustainable strategies for achieving cost leadership. Keeping advertising expenses at a maximum may not necessarily align with a cost-leadership strategy, as this would increase costs rather than reducing them.

A Company Pursuing a Cost-Leadership Strategy Does Which of the Following