A company that pursues ________ will react much more strongly to a competitor's cost reducing manufacturing breakthrough than to the same competitor's advertising increase.
A) product differentiation
B) low-cost leadership
C) customer intimacy
D) a middle-of-the-roaders strategy
E) product leadership

Question

Quizplus · Accepted Answer

A company pursuing low-cost leadership will prioritize cost reduction and efficiency. Therefore, any move by a competitor that threatens their position as the lowest-cost provider will be seen as a significant threat and elicit a strong reaction. In contrast, an increase in advertising spending by a competitor may not affect a low-cost leader as significantly.

A Company That Pursues ________ Will React Much More Strongly