If a company wishes to be a price-taker, which of the following strategies should they take?

Question

Quizplus · Accepted Answer

A company that wishes to be a price-taker should enter a competitive market and focus on cost cutting. This means they should strive to produce their product at the lowest cost possible in order to compete on price with other firms in the market. Producing a unique product (B) or exploiting the value of a fashionable brand name (C) would be strategies for companies that wish to be price-makers, as they signal value and exclusivity that justify higher prices. Differentiating the product clearly from competitors (D) could also work, but it runs the risk of creating a product that is not a perfect substitute for other products in the market, which could limit the company's ability to be a price-taker.

If a Company Wishes to Be a Price-Taker, Which of the Following