Using an organisation of your own choice as an example, define the cost leadership strategy and explain situations where it is most suitable and describe the benefits that it offers to the competitiveness of a firm. [20 marks]

Tip:

1. Identify a suitable organisation that has adopted the low-cost leadership strategy successfully.

2. Define the cost leadership strategy.

3. Explain the situation that has made it an attractive strategy to adopt.

4. Explain the benefits enjoyed by the firm as it uses the low-cost strategy.