Which of the following is an implication of all firms in an industry pursuing a low-cost position through application of competitive benchmarking?
A) No firm would face direct competition from others in the industry; hence, profit potential would be high.
B) Each firm would be catering to a different customer segment.
C) The firms would eventually have no resources to invest in product and process improvements.
D) Each firm would be in a better position to gain a competitive advantage.

Question

Quizplus · Accepted Answer

If all firms in the same industry pursued a low-cost position through application of competitive benchmarking, all firms would have identical cost structures. None could gain a competitive advantage. There would be little if any value creation for customers because companies would have no resources to invest in product and process improvements.

Which of the Following Is an Implication of All Firms