Question

A potential weakness of the cost leadership strategy is:

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

Answer 1

The potential weakness of the cost leadership strategy is deleting key features or reducing the quality of products or services.

Step-by-step explanation:

The potential weakness of the cost leadership strategy is deleting key features or reducing the quality of products or services. While cost leaders aim to offer products or services at the lowest prices in the market, compromising on features or quality can lead to decreased customer satisfaction and loyalty. This can make it easier for competitors with better or cheaper products to attract customers and potentially drive the cost leader out of business.