The risks of a cost leadership strategy include:
A)becoming 'stuck in the middle'
B)not increasing the value of a good or service in the face of successful imitations
C)the ability of competing firms to provide similar features in a product
D)customers deciding the product is not worth what the firm must charge for it

Question

Quizplus · Accepted Answer

A cost leadership strategy focuses on being the lowest cost producer, which can lead to risks if competitors successfully imitate the cost structure without increasing the product's value, making it difficult to maintain a competitive advantage.

The Risks of a Cost Leadership Strategy Include