BIC, makers of ballpoint pens and razors, concentrates on making its products less expensive than its rivals. BIC is pursuing a _______ strategy.

Question

Quizplus · Accepted Answer

With a low-cost strategy, managers try to gain a competitive advantage by focusing the energy of all the organization's departments or functions on driving the company's costs down below the costs of its industry rivals. BIC pursues a low-cost strategy; it offers customers razor blades priced lower than Gillette's and ballpoint pens less expensive than those offered by Cross or Waterman.

BIC, Makers of Ballpoint Pens and Razors, Concentrates on Making