Which of the following is a risk (or pitfall)of cost leadership?
A) the strategy is too easily imitated
B) attempts to stay ahead of the competition may lead to gold plating
C) cost differences increase as the market matures
D) producers are more able to withstand increases in suppliers' cost

Question

Quizplus · Accepted Answer

Cost leadership relies heavily on achieving low costs through economies of scale, efficient processes, and reliable supply chains. However, competitors can easily imitate these cost-cutting measures, leading to a race to the bottom in terms of prices, which can harm profitability. This is a significant risk associated with cost leadership.

Which of the Following Is a Risk (Or Pitfall)of Cost