Risks of cost leadership

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Offline Shah Alam Kabir Pramanik

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Risks of cost leadership
« on: April 15, 2017, 09:07:16 AM »
Risks of cost leadership
Cost leadership is vulnerable to the same risks. Some of these risks are..
1. Cost leadership is not sustained because,
•   Competitive imitate: your strategy may be imitate by your competitors.
•   Technology changes: technological change that nullifies past investments or learning
•   Other bases for cost leadership erode
2. Proximity in differentiation is lost.
3. Cost focuser achieve even lower cost in segment.