The Competitive Positioning Strategy Whereby the Company Works Hard to Achieve

question 39

Multiple Choice

The competitive positioning strategy whereby the company works hard to achieve the lowest costs of production and distribution so that it can price lower than its competitors is known as:

• A) focus.
• B) middle- of- the- road.
• C) differentiation.
• D) price sensitivity.
• E) overall cost leadership.

---

Definitions:

Assets

Items of value owned by individuals, companies, or governments, including tangible items like real estate and equipment, and intangible items like patents and trademarks.

Explicit Cost

Direct, out-of-pocket payments for goods or services that a company incurs in the course of doing business.

Economic Profit

The difference between the total revenue received by a firm and the total cost of all resources used, including opportunity costs.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision. It represents the benefits an individual, investor or business misses out on when choosing one alternative over another.