The Cost leadership strategy is the best strategy to use when…….
A.
Buyers’ preferences are diverse and different offerings are available to different customer segments.
B.
Brand loyalty exists and therefore customers will have a lower tendency to switch to a competing brand.
C.
It is viable for larger organisations to meet the specialised needs of a niche segment while maintaining performance in their mainstream market segment.
D.
The product offerings of competitors are similar and there is a great degree of product standardisation.
E.
Customers are both price and quality sensitive because they demand value for their money.
D. The product offerings of competitors are similar and there is a great degree of product standardization.
Cost leadership is most effective when there is intense competition and when products are standardized, as it allows a company to maintain a competitive advantage through lower prices. This strategy is effective when there is little differentiation between products in the market.