In Which of the Following Situations Would a Firm Most

question 42

Multiple Choice

In which of the following situations would a firm most likely pursue a low-cost leader strategy?

• A)There are no competitors in the market and the firm is the market leader.
• B)The nature of its products does not allow the firm to maintain a volume advantage in the market.
• C)The company's product is a niche product and appeals to only a few customers.
• D)The market is quality-sensitive rather than price-sensitive.
• E)The firm can minimize its operational expenses in order to sell higher volumes of products.

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Definitions:

Cost of Labor

The total amount spent by businesses on employee wages, benefits, and payroll taxes.

Supply Chain Operation

The execution and management of activities involved in sourcing, procurement, conversion, and logistics management to produce and deliver goods or services.

Logistics Facility Location

The strategic decision-making process regarding the placement of logistical facilities, such as warehouses and distribution centers, to optimize supply chain efficiency.

Supply Chain Network Redesign

The process of reassessing and altering the structure of a supply chain to improve efficiency, reduce costs, or meet new market demands.