The big danger or risk of a best-cost provider strategy is
A)that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features.
B)not establishing strong alliances and partnerships with key suppliers.
C)that rivals with low-cost provider strategies will be able to steal away some customers on the basis of a lower price, and high-end differentiators will be able to steal away customers with the appeal of better product attributes.
D)that it will be unable to achieve top-notch quality at a rock-bottom cost.
E)becoming too highly integrated and not relying enough on outsourcing.

Question

Quizplus · Accepted Answer

The big danger of a best-cost provider strategy is that rivals with low-cost provider strategies can easily undercut their prices, and high-end differentiators with better product attributes can attract customers away. This means there is a risk of losing customers to both low-cost and high-end differentiators.

The Big Danger or Risk of a Best-Cost Provider Strategy