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 choices

Question

Quizplus · Accepted Answer

A company pursuing a cost-leadership strategy focuses on reducing production costs, streamlining operations and supply chains, and achieving economies of scale to keep costs as low as feasible while maintaining the same level of quality as competitors. This does not involve including substandard components in the product, keeping advertising expenses at a maximum, or relying on patent protections to keep costs low.

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