Question

When a car rental company chooses to offer inexpensive rental prices to its customers by renting base​ model, older​ cars, it is pursuing​ a(n) ____________ competitive strategy A cost follower B, cost leader C. differentiation D. cost distributionE. industry attack

Answer 1

When a car rental company chooses to offer inexpensive rental prices to its customers by renting base​ model, older​ cars, it is pursuing​ a cost leader competitive strategy

Explanation:

Cost Leadership is the tool of building ambitious support by having the cheapest value of service in the enterprise. This approach is particularly profitable in a business where the cost is an imperative portion.The main purpose of a firm striving to achieve cost leadership is to enhance the cheapest cost yielder in contrast to the opponents.

Cost Leadership is the mechanism of building a competing benefit by having the cheapest cost of operation in the industry. This approach is particularly profitable in a market where the price is an important factor. The primary purpose of a firm aiming to attain cost leadership is to become the lowest-cost producer in comparison to the competitors. So here they are applying cost leader strategy to compete with the competitors.