The big danger or risk of an unsound best-cost provider strategy is
A) that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features.
B) not establishing strong alliances and partnerships with key suppliers.
C) that low-cost leaders will be able to steal away some customers on the basis of a lower price and high-end differentiators will be able to steal away customers with the appeal of better product attributes.
D) that it will be unable to achieve top-notch quality at a rock-bottom cost.
E) becoming too highly integrated and not relying enough on outsourcing.

Question

Quizplus · Accepted Answer

The big risk of an unsound best-cost provider strategy is that low-cost leaders will be able to steal some customers on the basis of a lower price, and high-end differentiators will be able to steal away customers with the appeal of better product attributes. This means that a company will be stuck in the middle and unable to effectively compete with either low-cost or high-end competitors.

The Big Danger or Risk of an Unsound Best-Cost Provider