Different companies across different industries adopt any one of the five generic strategies to gain competitive advantage.Which of the following businesses is most likely to use a low-cost provider strategy?
A)A fashion clothing line uses sought-after designers and natural fabrics
B)A mortgage company specializes in lending money for second homes
C)An online retailer delivers organic groceries overnight
D)A baby products retailer sells unassembled baby furniture produced in China
E)A dairy products manufacturer uses exotic substitutes to produce lactose-free dairy products

Question

Quizplus · Accepted Answer

The business that is most likely to use a low-cost provider strategy is the one that sells unassembled baby furniture produced in China. This suggests that the retailer is probably sourcing its products at a lower cost than competitors and passing on the savings to customers. The other options mention expensive designers, specialized lending, overnight delivery, and exotic substitutes, which do not suggest a focus on low-cost production or pricing.

Different Companies Across Different Industries Adopt Any One of the Five