A Potential Weakness of the Cost Leadership Strategy Is

question 54

Multiple Choice

A potential weakness of the cost leadership strategy is:

• A)Cutting costs in a way that causes the firm to grow too fast.
• B)Deleting key features or reducing quality of products or services.
• C)Lowering productivity to ensure lower costs.
• D)Increasing life cycle costs.
• E)Increasing prices temporarily to undermine competition.

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Definitions:

Operational Effectiveness

Refers to an organization's ability to perform activities more effectively and efficiently than its competitors, leading to superior performance.

Supply Chain

The entire system of production, handling, and distribution of goods from raw materials to final products to the consumer.

Production Time

The period required to manufacture or produce goods, from the start of the process to its completion.

Differentiation

The process of distinguishing a product or service from others to make it more attractive to a particular target market.