Which of the following generic competitive strategies would a producer of commodity such as steel most likely pursue?
A) Exclusive dealing
B) Broad differentiation
C) Focus differentiation
D) Broad low cost
E) Horizontal integration

Question

Quizplus · Accepted Answer

A producer of a commodity such as steel would most likely pursue a broad low cost strategy in order to compete based on price in a highly competitive market. This involves achieving economies of scale through high volume production and minimizing production costs in order to offer the lowest price possible to customers. Exclusive dealing, broad differentiation, and focus differentiation strategies are more appropriate for businesses operating in markets with less intense competition or those offering unique and customized products. Horizontal integration is a growth strategy that involves acquiring businesses within the same industry or value chain, and would not necessarily be tied to a specific competitive strategy.

Which of the Following Generic Competitive Strategies Would a Producer