A furniture company is trying to keep the costs of the company low by switching its suppliers and ordering materials in larger quantities in order to reduce overall costs. The company is employing a _____.
A) focused differentiation strategy
B) low-cost strategy
C) high-cost strategy
D) unifying strategy
E) hypercompetition strategy

Question

Quizplus · Accepted Answer

The furniture company is employing a low-cost strategy by trying to reduce overall costs through switching suppliers and ordering materials in larger quantities. This strategy focuses on keeping costs low in order to offer products at a lower price than competitors, appealing to price-sensitive consumers.

A Furniture Company Is Trying to Keep the Costs of the Company