Strategic Management and Competitive Advantage: Concepts and Cases, 6th Edition by Pearson

CHAPTER 4

Cost Leadership

LEARNING OBJECTIVES

After reading this chapter, you should be able to:

1. 4.1 Define business level strategies.
2. 4.2 Define cost leadership as a business level strategy and identify six reasons firms can differ in their costs.
3. 4.3 Describe how cost leadership can create economic value for a firm.
4. 4.4 Identify the bases of cost leadership that are more likely to be rare and costly to imitate and those that area less likely to be rare and costly to imitate.
5. 4.5 Explain how firms use a functional organizational structure, formal and informal management controls, and compensation policies to implement cost leadership strategies.

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