A Company's Biggest Vulnerability in Employing a Best-Cost Provider Strategy

question 14

Multiple Choice

A company's biggest vulnerability in employing a best-cost provider strategy is

• A) relying too heavily on outsourcing.
• B) getting squeezed between the strategies of firms employing low-cost provider strategies and high-end differentiation strategies.
• C) getting trapped in a price war with low-cost leaders.
• D) being timid in cutting its prices far enough below high-end differentiators to win away many of their customers.
• E) not having a sustainable distinctive competence in cost reduction.

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Definitions:

Growth Spurt

A rapid increase in growth rate, especially in height and weight, commonly observed during puberty.

Puberty

The stage in life when a person develops secondary sex characteristics and becomes capable of reproduction.

Physical Changes

Alterations in the form, appearance, or state of matter of a substance without changing its chemical composition.

Sexual Development

The process of physical and emotional changes that occur as a person matures sexually, including puberty and the development of sexual identity.