When a company services the broad market and has a low degree of product differentiation,it is most likely
A) pursuing a cost-leadership strategy.
B) pursuing a differentiation strategy.
C) pursuing a focus strategy.
D) stuck in the middle.
E) pursuing both cost leadership and differentiation.

Question

Quizplus · Accepted Answer

A company that serves a broad market and has a low degree of product differentiation is likely pursuing a cost-leadership strategy. This means that the company is focusing on producing products or services at a low cost, in order to offer competitive prices to customers. This is usually achieved through operational efficiency and cost-cutting measures. Product differentiation is not the focus of a cost-leadership strategy, as it would increase the cost of production.

When a Company Services the Broad Market and Has a Low