A Disadvantage of Pursuing a Low-Cost Strategy Is That

question 9

Multiple Choice

A disadvantage of pursuing a low-cost strategy is that:

• A) it makes it difficult for the firm to customize its product offerings.
• B) price wars make it hard to compete with differentiators.
• C) it makes it easier for rivals to enter the firm's market.
• D) it makes it difficult to respond to demands from deep price discounts from powerful buyers and still make money.
• E) it makes it difficult to absorb cost increases that may be passed on downstream by powerful suppliers.

---

Definitions:

Negativism

A pessimistic attitude characterized by a tendency to resist suggestions, refuse compliance, or exhibit opposition in behavior.

Temper Tantrums

Emotional outbursts, typically seen in children, characterized by crying, screaming, or aggressive behavior in response to frustration.

Baby Talk

A simplified form of speech, often with exaggerated intonation and rhythm, used by adults when communicating with babies.

Nutritious Snacks

Snacks that are high in beneficial nutrients and contribute to a healthy diet and overall wellness.