Question 4 (1 point) Which of the following is false with respect to the strateg

Question

Question 4 (1 point) Which of the following is false with respect to the strategy of cost leadership? Explain your reasoning a) A firm following a strategy of cost leadership is following a genere strategy narrow n b) A firm can follow a cost leadership strategy through achieving benefit parity by c) A firm can follow a cost leadership strategy through achieving benefit proximity by d) A firm following a strategy of cost leadership creates more value than its competitors e) A firm can follow a cost leadership strategy by offering a product that is qualitatively scope making products with the same B, but at a lower C than its rivals offering a B that is not much less than those of competitors by offering products that have a lower C than those of its rivals different from that of its rivals Question 5 (2 points) resources to create value. Give two examples of each.

Explanation / Answer

4)

Cost leadership means the lowest operation cost in the industry by using economies of scale and well defined processes. In this, company aims to provide higher value to customer at lower cost. It may cut down on benefits to attract more customer or reduce cost of operation. However, no a days, companies use mix of strategy and cost leadership scope has reduced. But, Cost leadership is not possible by degrading product quality. It should match with rivals in order to maintain cost advantage. Example: WalMart follows Cost leadership by offering lower price and maintaining quality

Ans: E

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