All of the following statements about cost leadership strategy are true, except:
A.
Cost focus strategy requires reducing expenses to lower the price of the items sold in a relatively broad array of market segments.
B.
Significant investments in capital equipment may be necessary to improve the production or distribution process to give low unit costs.
C.
The cost leader still must have adequate quality levels.
D.
Walmart's sophisticated systems of regional warehouses and electronic data interchange with suppliers have led to huge cost savings.
Answer: A