The competitive strategy in which the firm succeeds by producing at the lowest cost in the industry is termed:
A)Differentiation.
B)Cost advantage.
C)Price strategy.
D)Cost leadership.
E)Resource-based strategy.

Question

Quizplus · Accepted Answer

Cost leadership is a competitive strategy in which a firm aims to become the low-cost producer in its industry, allowing it to offer lower prices than competitors or to earn a higher profit margin while charging competitive prices. This strategy requires efficient operations, tight cost controls, and economies of scale that allow the firm to produce products or services at a lower cost than competitors.

The Competitive Strategy in Which the Firm Succeeds by Producing