The Competitive Objective of a Best-Cost Provider Strategy Is to

question 34

Multiple Choice

The competitive objective of a best-cost provider strategy is to

• A)outmatch the resource strengths of both low-cost providers and differentiators.
• B)position the company outside the competitive arena of low-cost producers and differentiators.
• C)meet or exceed buyer expectations on key quality/performance/features/service attributes and beat their expectations on price (given what rivals are charging for much the same attributes).
• D)deliver superior value to buyers by doing such a good job of cost control that it ends up with the best cost (as compared to rivals)in performing each activity in its value chain.
• E)identify and concentrate on those differentiating features that are inexpensive to incorporate.

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Definitions:

Scanning

The act of systematically exploring various environments and sources for information, often to identify trends, opportunities, and threats.

Competitive Intelligence

A formal approach to obtain information about competitors.

North American Free Trade Agreement (NAFTA)

A treaty entered into by the United States, Canada, and Mexico; it was designed to remove tariff barriers between the three countries.

General Motors (GM)

An American multinational corporation headquartered in Detroit that designs, manufactures, markets, and distributes vehicles and vehicle parts.