A focused low-cost strategy seeks to achieve competitive advantage by
A)outmatching competitors in offering niche members an absolute rock-bottom price.
B)delivering more value for lesser money than other competitors.
C)performing the primary value chain activities at a lower cost per unit than can the industry's low-cost leaders.
D)dominating more market niches in the industry via a lower cost and a lower price than any other rival.
E)serving buyers in a narrow piece of the total market (target market niche)at a lower cost and lower price than rivals.

Question

Quizplus · Accepted Answer

A focused low-cost strategy seeks to concentrate on a narrow segment of the market and compete on the basis of cost leadership in that segment, offering a cheaper price and lower cost structure than rivals. By serving a narrow target market, the firm can achieve a lower cost structure and better meet the needs of that particular market segment, creating a competitive advantage.

A Focused Low-Cost Strategy Seeks to Achieve Competitive Advantage by