A cost leadership strategy requires a firm to ________.
A) maintain the lowest cost structure
B) maintain the lowest prices to its customers
C) aim at a cost advantage in a niche market
D) match its competition's prices

Question

Quizplus · Accepted Answer

A cost leadership strategy requires a firm to maintain the lowest cost structure compared to its competitors. This can be achieved through various methods such as economies of scale, efficient supply chain management, and low-cost labor. By having a lower cost structure, the firm can offer lower prices to its customers or maintain higher profit margins compared to competitors who have higher costs.

A Cost Leadership Strategy Requires a Firm to ________