💼 Pre-MBA Exam Prep

Cost leadership strategy aims to:

A Charge the highest prices
B Become the lowest-cost producer in the industry while maintaining acceptable quality
C Differentiate products
D Serve a niche market only

✓ Correct Answer: Option B

Porter generic strategy: cost leadership — achieve lowest cost structure through economies of scale, efficiency, tight cost control. Allows profitable pricing below competitors while maintaining margins.

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