A disadvantage of pursuing a low-cost strategy is that:
A) it makes it difficult for firms to customize their product offerings .
B) price wars make it hard to compete with differentiators.
C) it costs more than a differentiation strategy because of the necessity of high capital investments.
D) powerful buyers are a major threat.
E) it reduces customer retention.

Question

Quizplus · Accepted Answer

Pursuing a low-cost strategy typically involves offering standardized products or services to a large market, which makes it difficult for firms to customize their offerings to meet the specific needs and preferences of individual customers. This can limit the appeal of the product or service to certain segments of the market and decrease customer satisfaction.

A Disadvantage of Pursuing a Low-Cost Strategy Is That