A Disadvantage of Pursuing a Low-Cost Strategy Is That

question 62

Multiple Choice

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

• A) it makes it difficult for firms to customize their product offerings .
• B) price wars make it hard to compete with differentiators.
• C) it costs more than a differentiation strategy because of the necessity of high capital investments.
• D) powerful buyers are a major threat.
• E) it reduces customer retention.

---

Definitions:

Population Means

The average of a set of characteristics (such as age, weight, etc.) of every member of a population.

Tunica Interna

The innermost layer of a blood vessel, consisting of endothelial cells that line the lumen of vessels.

Stratified Squamous Epithelium

A type of epithelial tissue composed of several layers, with the top layers being flat cells, found in areas subjected to friction.

Basement Membrane

A thin, dense layer of extracellular matrix that separates epithelial or endothelial cells from underlying connective tissue, providing support and anchorage.