Question

Computer maker Dell tries to have the lowest prices for its computers in order to attract a large consumer group. In Porter's four competitive strategies, this would be an example of the _____ strategy.

Answer 1

Answer: Cost leadership strategy

Explanation:

Cost leadership strategy is a business strategy in which a business operates at the lowest possible cost within it's industry so as to create a competitive advantage. This strategy is controlled by size, scope and cumulative experience, efficiency, etc.

Cost leadership strategy helps to :

I. Reduce the rate of competition in the market.

II. Enhance business sustainability.

III. Yield more profit for businesses.