A Competitive Strategy of Striving to Be the Low-Cost Provider

question 7

Multiple Choice

A competitive strategy of striving to be the low-cost provider is particularly attractive when

• A)buyers are not very price-conscious.
• B)most rivals are trying to be best-cost providers.
• C)there are many ways to achieve product differentiation that have value to buyers.
• D)most buyers use the product in much the same ways, with user requirements calling for a standardized product.
• E)most rivals are pursuing focused low-cost or focused differentiation strategies.

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Definitions:

Poverty-stricken Countries

Refers to nations with low levels of income and economic development, often characterized by insufficient access to basic necessities such as food, clean water, and healthcare.

Information Technology

The use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Poverty Trap

An economic condition in which it is difficult for an individual to obtain enough capital and/or credit to escape poverty; it causes poverty to persist and is also called the “cycle of poverty”.

Public Services

Essential services provided by the government to its citizens, such as healthcare, education, and transportation.