Question

1. What are three industries in which a cost leadership strategy would be difficult to implement

Answer 1

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q...What are three industries in which a cost leadership strategy would be difficult to implement?

ans...Cost leadership is one strategy where a company is the most competitively priced product on the market, meaning it is the cheapest. You see examples of cost leadership as a strategic marketing priority in many big corporations such as :-

• Walmart,

• McDonald's

• Southwest Airlines

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Answer 2

Answer:

Cost leadership is an effective business-level strategy to the extent that a firm offers low prices, provides satisfactory quality, and attracts enough customers to be profitable

Explanation:

Luxury fashion industry - think Louis Vuitton and Gucci.

SaaS industry - think Salesforce or Zoom.

Oil and gas industry - think Exxon Mobil or Chevron.

The cost leadership strategy emphasizes efficiencies. If you can produce a good cheaper than others, you can lower the price while maintaining your profit margin (i.e., make the same or make more).

So, what makes this strategy difficult in these industries? Well, it relies heavily on cost-conscience buyers. Meaning, as a buyer, I need to care more about price than I do about brand loyalty, product offering, etc.

In the industries described above, many people choose to ignore the price tag in favor of wanting a Gucci belt for the sake of that obnoxiously large “Double-G.” So why would Gucci - or any competitor in luxury fashion - care about leading with low-cost? They wouldn’t. Same story with Salesforce or Zoom. Companies buy those products with the capabilities in mind more often than they do the cost. Cost can play a factor.but in these cases cost doesn't play a factor Brand does.