Question

George's Quick Stop is planning to compete using a cost-leadership strategy. Doing this means George's will have what kind of products in their convenience stores?

Answer 1

a. basic, no frills product offerings b. highly unique product offerings c. specialty shopping bags d. high-end products e. live music on the weekends George's quick stop should offer basic, no frills product offerings to use a cost leadership strategy.

Answer: Option A.

Explanation:

In business strategy, cost leadership is establishing a competitive advantage by having the lowest cost of operation in the industry. Cost leadership is often driven by company efficiency, size, scale, scope and cumulative experience.

There are two main ways of achieving this within a Cost Leadership strategy: Increasing profits by reducing costs, while charging industry-average prices. Increasing market share by charging lower prices, while still making a reasonable profit on each sale because you've reduced costs where the basic motive is to offer the product at the lowest price to attract as many customers as possible.