A typical cost leadership strategy involves
A)a firm producing a few limited-feature standard products, or providing a very standardised service.
B)a medium or small firm with minimal overheads, and cheaply acquired (sometimes second-hand)assets.
C)a and b.
D)being the firm with the highest market share, and, often, the best-known brand in the industry.

Question

Quizplus · Accepted Answer

A cost leadership strategy involves producing standardised products or services at a lower cost than competitors. This often involves having minimal overheads and using cheaply acquired assets, as in option B. Option A, producing limited-feature standard products or services, is also often part of a cost leadership strategy. Therefore, both options A and B are included in option C, making it the best choice. Option D is incorrect as being the firm with the highest market share or best-known brand in the industry is not necessarily indicative of a cost leadership strategy.

A Typical Cost Leadership Strategy Involves