A low-cost position is most appropriate when:
A) the power of buyers is low and barriers to entry are high.
B) economies of scale are relatively unimportant in manufacturing products.
C) customers have very different needs and uses for the industry's products.
D) product innovation is the key competitive factor.
E) industry rivalry is high and customers are very sensitive to prices.

Question

Quizplus · Accepted Answer

A low-cost position is most appropriate when industry rivalry is high and customers are very sensitive to prices. This allows a company to offer products at a lower cost than competitors without sacrificing quality, which can help attract price-sensitive customers.

A Low-Cost Position Is Most Appropriate When