A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or focus strategy when
A)there are many ways to achieve product differentiation that buyers find appealing.
B)buyers use the product in a variety of different ways.
C)the offerings of rival firms are essentially identical,standardized,commodity-like products.
D)buyers have high switching costs in changing from one seller's product to another.
E)the market is composed of many buyer types,all with varying needs and expectations.

Question

Quizplus · Accepted Answer

When competitors offer essentially identical, standardized, commodity-like products, there is little room for differentiation, and thus, a low-cost strategy becomes the more appealing option. In such a scenario, customers will be more price-sensitive, and a company that can offer the lowest price will have a competitive advantage. A differentiation strategy would be difficult to achieve since buyers perceive the products as the same and won't be willing to pay more for different features or attributes.

A Strategy to Be the Industry's Overall Low-Cost Provider Tends