A Strategy to Be the Industry's Overall Low-Cost Provider Tends

question 69

Multiple Choice

A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost or focus/market niche strategy when

• A)there are many ways to achieve product differentiation that buyers find appealing.
• B)buyers use the product in a variety of different ways and have high switching costs in changing from one seller's product to another.
• C)the offerings of rival firms are essentially identical, standardized, commodity-like products.
• D)entry barriers are high and competition from substitutes is relatively weak.
• E)the market is composed of many distinct segments with varying buyer needs and expectations.

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Definitions:

Threshold Concept

A core idea or concept that, once understood, transforms perception of a given subject, acting as a gateway to deeper understanding and learning in that field.

Critical Mass

The minimum amount of something required to start or maintain a venture, often referring to the necessary volume of customers, resources, or support to make a project viable.

Revenues

The total income generated by a company from its business activities, before any expenses are subtracted.

Timmons Model

A model of entrepreneurship that emphasizes the importance of the opportunity, team, and resources, and suggests that these elements are critical to the success of any venture.