For a best-cost provider strategy to be successful, a company must have
A)excellent marketing and sales skills in convincing buyers to pay a premium price for the attributes/features incorporated in its product.
B)resource strengths and competitive capabilities that allow it to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes.
C)access to greater learning/experience curve effects and scale economies than rivals.
D)one of the best-known and most respected brand names in the industry.
E)a short, low-cost value chain.

Question

Quizplus · Accepted Answer

A best-cost provider strategy aims to provide customers with upscale attributes at a lower cost than competitors. Therefore, companies that can incorporate these upscale attributes while maintaining a lower cost structure have a competitive advantage. This requires having resource strengths and competitive capabilities that allow for cost savings in production, distribution, and other areas of the value chain. Options A, C, D, and E may be valuable in other strategies, but not necessarily for achieving a best-cost provider strategy.

For a Best-Cost Provider Strategy to Be Successful, a Company