The competitive advantage of a best-cost provider is
A) having the best value chain in the industry.
B) its brand name reputation.
C) its capability to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes.
D) a distinctive competence in delivering top-notch quality and customer service.
E) a distinctive competence in supply chain management.

Question

Quizplus · Accepted Answer

A best-cost provider's competitive advantage lies in its ability to offer higher-end attributes at lower costs compared to their competitors. They achieve this by combining the skills and resources of both low-cost providers and differentiation-focused providers. This enables them to cater to a value-conscious customer base who seeks high-quality products at affordable prices. Hence, option C is the correct choice. The other options may be important to a business, but they do not represent the competitive advantage of a best-cost provider.

The Competitive Advantage of a Best-Cost Provider Is