Question

Advantages and disadvantages of effective leadership

Answer 1

The advantages of effective leadership are : -

Effective leadership raises barriers to entry.
The firm is less vulnerable from its less cost effective competitors.
With cost leadership, customers cannot drive down prices further than the next most efficient competitor.
The disadvantages of cost leadership are : -

This strategy is internally focused and ignores customer needs.
Increases in input cost can reduce price advantages.
Effective concerns ingore product design or marketing issues.