An Integration Strategy Differs from a Low-Cost Strategy in That

question 29

Multiple Choice

An integration strategy differs from a low-cost strategy in that:

• A) The intent of an integration strategy is not to be the absolute lowest-cost provider because of the added costs of increased value in its products/service.
• B) A successful integration strategy requires that the business be the lowest-cost provider in order to drive higher value creation than the competition.
• C) Economy of scale is more important to an integrator, while economy of scope is more important to a low-cost strategy.
• D) An integration strategy requires first that the business be stuck in the middle, while a low-cost strategy avoids this condition.

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Definitions:

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