Which of the following is a risk (or potential pitfall)of cost leadership?
A) Cost cutting in one area of the value chain might increase costs in another.
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 supplier costs.

Question

Quizplus · Accepted Answer

Potential pitfalls of overall cost leadership strategy include too much focus on one or a few value-chain activities; increase in the cost of the inputs on which the advantage is based; the strategy is imitated too easily; a lack of parity on differentiation; reduced flexibility; and obsolescence of the basis of cost advantage

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