2 Choose one industry with which you are familiar.

What are the factors which influence the level of costs in that particular industry and the speed at which these costs can be, and are, reduced? Assess the relative importance of the different cost drivers in that industry.

From your own experience, give an example of an enterprise which operates closest to a pure cost leadership strategy. Explain why the enterprise behaves in this way. What is the nature of the product? Is this an appropriate strategy to pursue?