BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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differentiation
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cost leadership
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alliance
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defensive strategy
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Detailed explanation-1: -Cost Leadership: It is a strategy where a business produces the same quality of the product as of the competitors’ but sells it at a lower price.
Detailed explanation-2: -Cost leadership as an advantage occurs when a business is able to offer the same quality product as its competitors, but at a lower price.
Detailed explanation-3: -In business strategy, cost leadership is establishing a competitive advantage by having the lowest cost of operation in the industry. Cost leadership is often driven by company efficiency, size, scale, scope and cumulative experience (learning curve).
Detailed explanation-4: -Low-cost strategy enables the firm to sell its product/service with a lower price compared to its competitors because of lower costs of producing products/service; as a result of this, they win a competitive advantage in the industry.