Lower Cost (Cost Leadership) (VCE SSCE Business Management): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the main goal of a cost leadership strategy?
What is the main goal of a cost leadership strategy?
Be the lowest-cost producer in industry
Why must a business be THE lowest-cost producer, not just 'one of the cheapest'?
Why must a business be THE lowest-cost producer, not just 'one of the cheapest'?
Vulnerable to price wars & market share loss
What happens when a business reduces costs but maintains similar prices to competitors?
What happens when a business reduces costs but maintains similar prices to competitors?
Profit margins increase significantly
Why would a business charge lower prices than competitors under cost leadership?
Why would a business charge lower prices than competitors under cost leadership?
Attract price-conscious customers & gain share
What does asset utilisation mean in cost leadership?
What does asset utilisation mean in cost leadership?
Using resources efficiently for max output
How do businesses reduce operating costs through standardisation?
How do businesses reduce operating costs through standardisation?
High volumes of standardised, no-frills items
Which type of business is best suited for cost leadership strategies?
Which type of business is best suited for cost leadership strategies?
Large businesses with economies of scale
What is a key disadvantage of cost leadership regarding customers?
What is a key disadvantage of cost leadership regarding customers?
Lower customer loyalty due to price focus
How might customers perceive low-cost products?
How might customers perceive low-cost products?
Associate low cost with poor quality
What cost benefit does Ikea's flat-pack design provide?
What cost benefit does Ikea's flat-pack design provide?
Reduces packaging & shipping expenses