Which of the following generic competitive strategies is a producer of commodity steel most likely to pursue?
A)Exclusive dealing
B)Broad differentiation
C)Focus differentiation
D)Broad low-cost
E)Horizontal integration

Question

Which of the following generic competitive strategies is a producer of commodity steel most likely to pursue?
A)Exclusive dealing
B)Broad differentiation
C)Focus differentiation
D)Broad low-cost 
E)Horizontal integration

Quizplus · Accepted Answer

A producer of commodity steel is likely operating in a highly competitive market where price is a key determinant of success. Therefore, the producer would want to focus on achieving economies of scale and lowering production costs to maintain profitability. Pursuing a broad low-cost strategy would be the most appropriate option in such a case. Exclusive dealing and horizontal integration may not be relevant strategies for a commodity steel producer. Focus differentiation and broad differentiation strategies focus on creating unique and superior products or services, which may not be practical or feasible for a commodity steel producer.

Which of the Following Generic Competitive Strategies Is a Producer