A strategic position that enables a firm to be a low-cost leader in a narrow segment of the market is known as ________.
A) focused cost leadership
B) focused differentiation
C) low-cost leadership
D) strategic cost scope

Question

Quizplus · Accepted Answer

A firm that adopts a strategy of focused cost leadership seeks to be the lowest-cost producer in a narrow or niche market segment. It focuses on reducing costs in all areas of the business to achieve a competitive advantage over rivals. The strategy requires a company to target a specific customer group and offer products or services at a lower price point than competitors while still maintaining acceptable quality levels. This helps to attract and retain customers who are cost-conscious and willing to forego some non-essential features or benefits in exchange for lower prices. Focused cost leadership is a suitable strategy for small and medium-sized businesses with limited resources and capabilities.

A Strategic Position That Enables a Firm to Be a Low-Cost