The Chief Difference Between a Low-Cost Provider Strategy and a Focused

question 30

Multiple Choice

The chief difference between a low-cost provider strategy and a focused low-cost strategy is:

• A) whether the product is strongly differentiated or weakly differentiated from rivals.
• B) the degree of bargaining power that buyers have.
• C) the size of the buyer group that a company is trying to appeal to.
• D) the type of value chain being used to achieve a low-cost competitive advantage.
• E) the number of upscale attributes incorporated into the product offering.

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Definitions:

Consolidation Purposes

The process in accounting where the financial statements of a parent company and its subsidiaries are combined to present as one entity for reporting.

Local GAAP

Refers to the Generally Accepted Accounting Principles that are specific to a country, governing how financial statements should be prepared and reported.

U.S. GAAP

The accounting standards and principles specifically used within the United States to guide the preparation of financial statements.

Currency Balances

Refers to the amounts of foreign currencies held by a company at any given time, which can fluctuate due to changes in exchange rates.