The Competitive Objective of a Best-Cost Provider Strategy Is to

question 34

Multiple Choice

The competitive objective of a best-cost provider strategy is to

• A)outmatch the resource strengths of both low-cost providers and differentiators.
• B)position the company outside the competitive arena of low-cost producers and differentiators.
• C)meet or exceed buyer expectations on key quality/performance/features/service attributes and beat their expectations on price (given what rivals are charging for much the same attributes).
• D)deliver superior value to buyers by doing such a good job of cost control that it ends up with the best cost (as compared to rivals)in performing each activity in its value chain.
• E)identify and concentrate on those differentiating features that are inexpensive to incorporate.

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Definitions:

Cash Expenses

Expenses that a business or individual pays out in cash, excluding non-cash expenses such as depreciation.

Tax Rate

The rate at which taxes are levied on an individual or company.

Capital Budgeting

The process of planning and evaluating investments in long-term assets and projects to generate value over time.

Straight-Line Depreciation

A method of depreciation where an asset's cost is evenly spread across its estimated useful life.