A company pursuing cost leadership may try to further analyze the change in operating income even ...

 A company  pursuing cost leadership may try to further analyze the change in operating income even when the growth component is highly favorable because growth might have been helped by an increase in industry market size. Therefore, at least part of the increase in operating income may be attributable to favorable economic conditions in the industry rather than to any successful implementation of strategy. Some of the growth might relate to a management decision to decrease selling price, made possible by the productivity gains. In this case, the increase in operating income from cost leadership must include operating income from productivity-related growth in market share in addition to the productivity gain.

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