Asked by Michael Ariestan on Apr 26, 2024
Verified
When a firm adopts a strategy of being a low-cost producer and sells its products at a price lower than its competitors, the firm is said to be using a strategy of cost leadership.
Cost Leadership Strategy
A business strategy aiming to achieve the lowest production and operation costs within an industry to offer products or services at a lower price than competitors.
Low-Cost Producer
A company that can produce and sell goods or services at a lower cost than its competitors.
- Comprehend the key aspects of diverse business methodologies, such as cost leadership and product differentiation.
Verified Answer
FM
Fernanda MorenoApr 26, 2024
Final Answer :
True
Explanation :
This statement is true. Cost leadership strategy involves producing goods or services at the lowest possible cost and offering them to customers at a lower price than competitors.
Learning Objectives
- Comprehend the key aspects of diverse business methodologies, such as cost leadership and product differentiation.
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