A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost or focus/market niche strategy when
A)there are many ways to achieve product differentiation that buyers find appealing.
B)buyers use the product in a variety of different ways and have high switching costs in changing from one seller's product to another.
C)the offerings of rival firms are essentially identical, standardized, commodity-like products.
D)entry barriers are high and competition from substitutes is relatively weak.
E)the market is composed of many distinct segments with varying buyer needs and expectations.

Question

Quizplus · Accepted Answer

When the offerings of rival firms are essentially identical, standardized, commodity-like products, there is little room for differentiation and buyers are likely to make purchasing decisions based primarily on price. Therefore, being the industry's overall low-cost provider becomes a more appealing strategy.

A Strategy to Be the Industry's Overall Low-Cost Provider Tends