The chief difference between a low-cost provider strategy and a focused low-cost strategy is:
A) whether the product is strongly differentiated or weakly differentiated from rivals.
B) the degree of bargaining power that buyers have.
C) the size of the buyer group that a company is trying to appeal to.
D) the type of value chain being used to achieve a low-cost competitive advantage.
E) the number of upscale attributes incorporated into the product offering.

Question

Quizplus · Accepted Answer

The chief difference between a low-cost provider strategy and a focused low-cost strategy is the size of the buyer group that a company is trying to appeal to. A low-cost provider strategy aims at appealing to a broad range of customers by offering products at a lower cost than rivals, while a focused low-cost strategy aims to appeal to a narrower target market by offering products at a lower cost than other competitors focused on that target market.

The Chief Difference Between a Low-Cost Provider Strategy and a Focused