According to Porter's competitive strategies, which strategy should a company pursue if it possesses a low cost competitive advantage and a narrow competitive scope?
A) Low-cost leadership
B) Differentiation
C) Focused low-cost leadership
D) Focused differentiation

Question

Quizplus · Accepted Answer

When a company possesses a low cost competitive advantage and a narrow competitive scope, it should pursue a focused low-cost leadership strategy. This strategy involves targeting a specific market segment or niche and offering products or services at a lower cost than competitors. By focusing on a narrow market segment, the company can achieve economies of scale and minimize costs. This strategy is different from the broader low-cost leadership strategy because it focuses on a smaller market segment, rather than trying to be the overall low-cost producer in the industry.

According to Porter's Competitive Strategies, Which Strategy Should a Company