Success with a best-cost provider strategy designed to outcompete high-end differentiators requires:
A) achieving significantly lower costs in providing the upscale features
B) providing significantly better product attributes in order to justify a price above what low-cost leaders are charging.
C) matching the company's resources and capabilities to a low-cost provider status.
D) motivating buyers to purchase upscale features that match rivals.
E) All of these.

Question

Quizplus · Accepted Answer

In order to outcompete high-end differentiators, a best-cost provider strategy focuses on offering upscale features at a lower cost. This means achieving significantly lower costs in providing the upscale features is crucial to the success of this strategy. Option B, providing significantly better product attributes, is more in line with a differentiation strategy rather than a best-cost provider strategy. Option C, matching the company's resources and capabilities to a low-cost provider status, is important but not the primary focus of a best-cost provider strategy. Option D, motivating buyers to purchase upscale features that match rivals, is a consideration for any competitive strategy but not specific to a best-cost provider strategy.

Success with a Best-Cost Provider Strategy Designed to Outcompete High-End