A firm pursuing a best-cost provider strategy:
A) seeks to be the low-cost provider in the largest and fastest growing (or best)market segment.
B) tries to have the best cost (as compared to rivals)for each activity in the industry's value chain.
C) tries to outcompete a low-cost provider by attracting buyers on the basis of charging the best price.
D) seeks to deliver superior value to buyers by satisfying their expectations on key quality/service/features/performance attributes and beating their expectations on price (given what rivals are charging for much the same attributes).
E) seeks to achieve the best costs by using the best operating practices and incorporating the best features and attributes.

Question

Quizplus · Accepted Answer

A firm pursuing a best-cost provider strategy aims to provide superior value to buyers by meeting their expectations on key quality, service, features, and performance attributes and exceeding their expectations on price. It seeks to achieve the best cost (as compared to rivals) for each activity in the industry's value chain while delivering a quality product or service at a competitive price. This strategy is often successful in an industry where buyers are price-sensitive but also demand high-quality products or services.

A Firm Pursuing a Best-Cost Provider Strategy