Alpha Gamma Manufacturing Corp. uses a new technology that allows it to produce standard goods in an economical way. In contrast, its competitors strive for uniqueness and use technologies that offer unique products for which customers are willing to pay a premium price. In this case, Alpha Gamma Manufacturing has an advantage over its competitors because it has adopted a _____ strategy.
A)vertical integration
B)differentiation
C)low-cost
D)premium pricing
E)predatory pricing

Question

Quizplus · Accepted Answer

With low-cost leadership, the company maintains an advantage because it has a lower cost than its competitors. Technological innovations can be used to gain cost advantage through pioneering lower-cost product designs and creating low-cost ways to perform needed operations. Alpha Gamma Manufacturing Corp. has adopted a low-cost strategy.