Daffodil International University

Faculties and Departments => Business & Entrepreneurship => Business Administration => Topic started by: Shah Alam Kabir Pramanik on April 15, 2017, 09:07:16 AM

Title: Risks of cost leadership
Post by: Shah Alam Kabir Pramanik 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.