The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the:
A) standardized market price.
B) industry life-cycle stage.
C) degree of market segmentation.
D) age of the market.
E) market trajectory.

Question

Quizplus · Accepted Answer

Companies following a broad low-cost strategy aim to achieve cost leadership in the overall market, whereas those following a focus low-cost strategy target a specific, narrow segment of the market. Therefore, the degree of market segmentation is the main difference between the two strategies.

The Main Difference Between Companies Following a Broad Low-Cost Strategy