Which of the following is not one of the pitfalls of a low-cost provider strategy?
A) Overly aggressive price cutting
B) Using a cost-based advantage to improve the company's bargaining position with high-volume buyers
C) Relying on an approach to reducing costs that can be easily copied by rivals
D) Cutting prices more than the size of a company's cost advantage
E) Becoming too fixated on cost reductions so that the company's products are too features-poor

Question

Quizplus · Accepted Answer

Using a cost-based advantage to improve the company's bargaining position with high-volume buyers is not a pitfall of a low-cost provider strategy. It is, in fact, one of the advantages of this strategy. The other options listed are all potential pitfalls of a low-cost provider strategy.

Which of the Following Is Not One of the Pitfalls