A potential weakness of the cost leadership strategy is:
A)Cutting costs in a way that causes the firm to grow too fast.
B)Deleting key features of products or services.
C)Lowering productivity to ensure lower costs.
D)Increasing life cycle costs.
E)Increasing prices temporarily to undermine competition.

Question

Quizplus · Accepted Answer

A potential weakness of the cost leadership strategy is that in the pursuit of lower costs, the firm may delete key features of products or services that customers value, and this could ultimately lead to a decline in sales and market share.

A Potential Weakness of the Cost Leadership Strategy Is