The risks involved in using a low-cost strategy include all of the following except:
A) attaining significant economies of scale
B) the ability of competitors to copy the strategy
C) management not paying attention to shifts in the environment
D) getting "locked in" to a technology and organization design that is expensive to change

Question

Quizplus · Accepted Answer

Attaining significant economies of scale is actually a potential benefit of using a low-cost strategy, not a risk. The other options listed (B, C, and D) are all valid risks of using a low-cost strategy.

The Risks Involved in Using a Low-Cost Strategy Include All