The chief difference between a low-cost leader strategy and a focused low-cost strategy is
A)whether the product is strongly differentiated or weakly differentiated from rivals.
B)the degree of bargaining power that buyers have.
C)the size of the buyer group that a company is trying to appeal to.
D)the production methods being used to achieve a low-cost competitive advantage.
E)the number of upscale attributes incorporated into the product offering.

Question

Quizplus · Accepted Answer

The chief difference between a low-cost leader strategy and a focused low-cost strategy lies in the size of the buyer group that a company is trying to appeal to. A low-cost leader strategy aims to appeal to a broad range of buyers by offering the lowest prices possible, whereas a focused low-cost strategy aims to appeal to a smaller group of buyers by offering the lowest prices possible within a specific market segment.

The Chief Difference Between a Low-Cost Leader Strategy and a Focused