When a car rental company chooses to offer inexpensive rental prices to its customers by renting base model, older cars, it is pursuing a cost leader competitive strategy
Explanation:
Cost Leadership is the tool of building ambitious support by having the cheapest value of service in the enterprise. This approach is particularly profitable in a business where the cost is an imperative portion.The main purpose of a firm striving to achieve cost leadership is to enhance the cheapest cost yielder in contrast to the opponents.
Cost Leadership is the mechanism of building a competing benefit by having the cheapest cost of operation in the industry. This approach is particularly profitable in a market where the price is an important factor. The primary purpose of a firm aiming to attain cost leadership is to become the lowest-cost producer in comparison to the competitors. So here they are applying cost leader strategy to compete with the competitors.
