A firm that follows a low cost leadership strategy
A) Must heavily discount its prices.
B) Must command prices near the industry average.
C) Must focus on providing exceptional quality and service.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

A low cost leadership strategy does not necessarily mean heavily discounting prices or focusing on exceptional quality and service. The main focus is on reducing costs and becoming more efficient than competitors, which allows the firm to offer products or services at or near industry average prices, while still making a profit.

A Firm That Follows a Low Cost Leadership Strategy