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)Using approaches 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 so fixated on cost reductions that products become 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. In fact, it can be a benefit as the company can negotiate better deals with suppliers and buyers based on their cost advantage. The other options listed (A, C, D, and E) all represent potential pitfalls of a low-cost provider strategy.

Which of the Following Is Not One of the Pitfalls