Which of the following is not one of the pitfalls of a low-cost provider strategy?
A) overly aggressive price cutting
B) using a cost-based advantage to improve the company's bargaining position with high-volume buyers
C) using approaches to reducing costs that can be easily copied by rivals
D) cutting prices more than the size of a company's cost advantage
E) becoming so fixated on cost reductions that products become too features-poor

Question

Quizplus · Accepted Answer

Perhaps the biggest pitfall of a low-cost provider strategy is getting carried away with overly aggressive price cutting and ending up with lower,rather than higher,profitability.A second big pitfall is relying on an approach to reduce costs that can be easily copied by rivals.A third pitfall is becoming too fixated on cost reduction.

Which of the Following Is Not One of the Pitfalls