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The Value to a Company of Pursuing a Low-Cost Provider

Question 3

Multiple Choice

The value to a company of pursuing a low-cost provider strategy is contingent upon


A) the leader's ability to combine the cost advantage with a reputation for good quality.
B) the leader's ability to excel in manufacturing innovation so as to continuously reduce its manufacturing costs.
C) the leader's ability to attain the biggest market share in the industry.
D) whether or not it is easy or inexpensive for rivals to copy the low-cost leader's methods or otherwise match its low costs.
E) the aggressiveness with which the low-cost leader pursues converting the cost advantage into the absolute lowest possible costs.

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