The best way to build a cost leadership competitive advantage is to focus entirely on manufacturing costs.

Question

Quizplus · Accepted Answer

Building a cost leadership competitive advantage does not only rely on manufacturing costs. It also involves reducing costs in all areas of the value chain, such as sourcing raw materials, distribution, marketing, and administrative expenses. Focusing only on manufacturing costs may result in a short-term advantage but may not sustain the business in the long run.

The Best Way to Build a Cost Leadership Competitive Advantage