Which of the following statements about cost-leadership is not true?
A) A cost leader can achieve above-average performance if it can command prices at or near the industry average.
B) Low cost can result from high productivity and high capacity utilization.
C) Improvements in quality lead to improvements in productivity, which in turn lead to lower costs.
D) To achieve cost-leadership, a firm must be unique in its industry along some dimensions that are widely valued by customers.

Question

Quizplus · Accepted Answer

Cost-leadership focuses on gaining advantage by having the lowest cost of operation in the industry, not necessarily on being unique in ways that are widely valued by customers. This uniqueness is more associated with differentiation strategy.

Which of the Following Statements About Cost-Leadership Is Not True