Question

according to the five forces model, which of the following is viewed as a major risk to a business pursuing a cost-leadership strategy? group of answer choices new entrants with small production scale. suppliers requesting a 2% price increase for all firms in the focal firm's industry. direct competitors have leveraged technological innovations that allow them to develop a more efficient and cost-saving production method. competitors refine its product design to offer more attractive features.

Answer 1

The major risk to a business with a cost-leadership strategy in the Five Forces Model is competitors that implement technological innovations to offer more efficient and cost-effective production. Therefore correct option is C

Step-by-step explanation:

According to the Five Forces Model, which was developed by Michael Porter to analyze the competitive environment of a business, a major risk to a business pursuing a cost-leadership strategy comes from direct competitors that have leveraged technological innovations to develop a more efficient and cost-saving production method. This is because such innovations can undercut the cost-leader by offering products at even lower prices or by providing better value for money through improved quality or features. Firms pursuing cost-leadership must continuously seek ways to reduce their costs and improve their production efficiency to maintain their competitive edge.