Under Which Condition Would a Cost Leadership Strategy Be Especially

question 25

Multiple Choice

Under which condition would a cost leadership strategy be especially effective?

• A) When there are many ways to differentiate the product or service and many buyers perceive these differences as having value.
• B) When buyer needs and uses are diverse.
• C) When few rival firms are following a similar approach
• D) When technological change is fast paced and competition revolves around rapidly evolving product features.
• E) When the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers.

---

Definitions:

Percentage Change

A mathematical calculation that indicates the degree of change over time, expressed as a percentage.

Price Decrease

A reduction in the monetary amount that consumers are required to pay to acquire a good or service.

Unit Sales

The total number of individual items or units that are sold within a specific period.

Traceable Fixed Expense

Fixed costs that can be directly linked to a specific segment of a business, like a product line or department.