A strategy to be a low-cost provider of branded footwear


A companys strategy to be a low-cost provider of branded footwear can fail to produce good company performance when managers

Answer

Answer : Managers do not operate the company’s production facilities as cost efficiently as needed to achieve total production costs per branded pair that – if not equal to the industry-low in each geographic region – are at least close to the industry-low in each geographic region.

Note : When the managers of the low cost branded footwear do not achieve the total production cost due to which the brand suffers the cost effectiveness and loses its control over the industry as the cost of the footwear tend to increase.

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