A strategic position that enables a firm to produce a good while maintaining total costs that are lower than its competitors is called ________.
A) differentiation
B) efficiency
C) low-cost leadership
D) focus

Question

Quizplus · Accepted Answer

The strategic position described in the question is the definition of "low-cost leadership." This means that the firm is able to produce a product at a lower cost than its competitors, which gives them an advantage in terms of pricing and profitability. Choice A (differentiation) refers to a strategy focused on creating unique and distinctive products, which is not described in this question. Choice B (efficiency) is a factor that can contribute to a low-cost strategy, but is not the same as the strategy itself. Choice D (focus) refers to a strategy of targeting a specific segment of the market, which is also not described in this question.

A Strategic Position That Enables a Firm to Produce a Good