The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the:
A)standardized market price.
B)industry life cycle stage.
C)degree of market segmentation.
D)age of the market.
E)market trajectory.

Question

The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the:
A)standardized market price.
B)industry life cycle stage.
C)degree of market segmentation.
D)age of the market. 
E)market trajectory.

Quizplus · Accepted Answer

The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the degree of market segmentation. Broad low-cost strategy focuses on serving a large market segment with a standardized product at a low price, while focus low-cost strategy targets a smaller, more specialized market segment with a lower-priced product. The industry life cycle stage, age of the market, market trajectory, and standardized market price are not the main factors that differentiate between these two strategies.

The Main Difference Between Companies Following a Broad Low-Cost Strategy