A low-cost leadership strategy becomes competitively powerful when
A)buyers of the product or service use the product or service in the same ways.
B)the offerings of rival firms are essentially unique, different, and customized to end users.
C)price competition among rivals is absent.
D)buyers prefer that the products/services of competing sellers have widely varying attributes and prices.
E)buyers have high switching costs.

Question

Quizplus · Accepted Answer

A low-cost leadership strategy becomes competitively powerful when buyers of the product or service use the product or service in the same ways. This is because the focus of a low-cost strategy is to produce and deliver goods or services at a lower cost than competitors, while maintaining acceptable levels of quality. If buyers use the product in the same way, then it is easier to keep costs low because the production and delivery process can be standardized. This results in a lower price for the customer, which can give the company a competitive advantage.

A Low-Cost Leadership Strategy Becomes Competitively Powerful When