Question

which scenario is best suited for a cost leadership strategy? the product or service is highly differentiated. when technological change is rapid and product features are very important. when all of the competitors' products have basically the same features. when buyers have very specific and varied needs.

Answer 1

A cost leadership strategy works best in scenarios where competitors' products have similar features, and price becomes the main differentiator for customers.

Step-by-step explanation:

The scenario that is best suited for a cost leadership strategy is when all of the competitors' products have basically the same features. In a market where products are commodities and differentiation is minimal, businesses benefit from being the low-cost provider since customers do not perceive much difference between brands and make decisions primarily on price. A cost leadership strategy is less effective when products or services are highly differentiated, when technological change is rapid and product features are crucial, or when buyers have very specific and varied needs, as these scenarios tend to favor strategies that emphasize uniqueness and customization over cost.