Cost-Leadership (1 Viewer)

[alekovic]

One of my business studies textbooks (Ian Moore- Creative) suggests that cost-leadership is an operations strategy adopted by firms who "compete against other firms through lower prices".

I'm pretty certain this is incorrect. I thought cost-leadership referred to aiming for the lowest cost of production per unit of output- which may not always manifest itself in the form of lowest market price as the firm may try to sell above equilibrium to maximise profits? esp if demand for the good is relatively inelastic and competition is low...

Ian Moore is usually pretty good with his definitions, though I think he has this wrong.. Thoughts?

 

[nerdasdasd]

One of my business studies textbooks (Ian Moore- Creative) suggests that cost-leadership is an operations strategy adopted by firms who "compete against other firms through lower prices".

I'm pretty certain this is incorrect. I thought cost-leadership referred to aiming for the lowest cost of production per unit of output- which may not always manifest itself in the form of lowest market price as the firm may try to sell above equilibrium to maximise profits? esp if demand for the good is relatively inelastic and competition is low...

Ian Moore is usually pretty good with his definitions, though I think he has this wrong.. Thoughts?

Business studies doesn't consider economic concepts.....

Ummm by aiming to reduce per unit costs , firms do compete by lowering prices,

 

[enigma_1]

One of my business studies textbooks (Ian Moore- Creative) suggests that cost-leadership is an operations strategy adopted by firms who "compete against other firms through lower prices".

I'm pretty certain this is incorrect. I thought cost-leadership referred to aiming for the lowest cost of production per unit of output- which may not always manifest itself in the form of lowest market price as the firm may try to sell above equilibrium to maximise profits? esp if demand for the good is relatively inelastic and competition is low...

Ian Moore is usually pretty good with his definitions, though I think he has this wrong.. Thoughts?

Lol mate, you gotta dumb it down a bit for Business. The markers assume you don't know economics haha. But of course having an economics background will work in your favour.

 

[obliviousninja]

Lol mate, you gotta dumb it down a bit for Business. The markers assume you don't know economics haha. But of course having an economics background will work in your favour.

Wrong!

No issue with being flashy. You got to stand out, espicially when everyone is using the same generic definition from the textbook.

If you want that 19-20/20 you got to be the best essay that the marker reads on the day, so expressing your knowledge is not really doing any harm, but rather consolidating your essay.