What is a hallmark of a cost leadership strategy?

In a cost leadership strategy, the primary goal is to become the lowest-cost producer in the industry. This approach enables a company to offer products or services at lower prices than competitors, which can attract a larger customer base and increase market share. By achieving cost leadership, a firm can maintain profitability even in price-sensitive markets, as it can leverage its cost advantage to compete effectively against rivals. This strategy often involves streamlining operations, optimizing supply chains, and seeking efficiencies in production to minimize costs.

The other options do not capture the essence of a cost leadership strategy. Offering the most expensive products contradicts the core principle of cost leadership. Focusing on customer service excellence and emphasizing product development may enhance product appeal or customer satisfaction, but they do not directly contribute to the fundamental goal of minimizing costs in order to lead the market in pricing.