For a best-cost provider strategy to be successful,a company must have
A) excellent marketing and sales skills in convincing buyers to pay a premium price for the attributes/features incorporated in its product.
B) the capability to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes.
C) access to greater learning/experience curve effects and scale economies than rivals.
D) one of the best-known and most respected brand names in the industry.
E) a short,low-cost value chain.

Question

Quizplus · Accepted Answer

A best-cost provider strategy involves offering a product with upscale attributes at a lower cost than rivals. Therefore, having the capability to incorporate these upscale attributes at lower costs than competitors is crucial for the success of this strategy. While access to learning/experience curve effects and scale economies can also be advantageous, it is not necessarily required for a best-cost provider strategy to be successful. Excellent marketing and sales skills or a well-known brand name may help to differentiate the product and attract customers, but they are not the essential factors for the success of this strategy. Similarly, having a short, low-cost value chain can help to reduce costs but may not be enough to differentiate the product and create a sustainable competitive advantage.

For a Best-Cost Provider Strategy to Be Successful,a Company Must