The risks associated with pursuing a cost leadership strategy include all of the following except:
A)Preoccupation with costs may lead a firm not to detect required product changes
B)The firm's products are likely to become targets for imitators
C)Efforts to cut costs could lead to unsafe products
D)Cost cutting could lead to products of very poor quality
E)Large investments could cause reluctance to change

Question

Quizplus · Accepted Answer

Imitation is a common risk for all business strategies, not just cost leadership. Cost leadership primarily involves minimizing costs to offer products at competitive prices, but this doesn't inherently make products more susceptible to imitation than other strategies.

The Risks Associated with Pursuing a Cost Leadership Strategy Include