A Competitive Strategy Predicated on Low-Cost Leadership Tends to Work

question 48

Multiple Choice

A competitive strategy predicated on low-cost leadership tends to work best when:

• A) there are widely varying needs and preferences among the various buyers of the product or service.
• B) there are many market segments and market niches,such that it is feasible for a low-cost leader to dominate the niche where buyers want a budget-priced product.
• C) price competition among rivals is especially vigorous and the offerings of rival firms are essentially identical,standardized,commodity-like products.
• D) buyers prefer that the products/services of competing sellers have widely varying attributes and prices.
• E) buyers have high switching costs and there is considerable diversity in how buyers use the product.

---

Definitions:

Tornadoes

Intensely spinning air columns that reach from the Earth's surface up to a cumulonimbus cloud or, occasionally, the bottom of a cumulus cloud.

Supervisor

An individual with managerial authority responsible for overseeing and guiding the work of others.

Inventory Manager

A person or software responsible for overseeing the ordering, storing, and managing of a company's inventory or stock.

Stock Boys

Employees responsible for stocking shelves, organizing products, and maintaining inventory in retail stores.