The Typical Risks of a Cost Leadership Strategy Include

question 32

Multiple Choice

The typical risks of a cost leadership strategy include:

• A) the inability to balance high differentiation and low price.
• B) production and distribution processes becoming obsolete.
• C) excessive differentiation to the point where the customer base is too small.
• D) loss of customer loyalty.

---

Definitions:

Loss

The state of being deprived of or of being without something that one has had.

Setback

An unexpected challenge or obstacle that delays progress or reverses some of the advances already made.

Farther

Used to describe a greater physical distance when comparing two or more points.

Testing

The process of evaluating the functionality, performance, or quality of a product, system, or concept through examination and trial.