Pressures for Cost Reduction Are Minimal in Industries Where Major

question 59

True/False

Pressures for cost reduction are minimal in industries where major competitors are based in low-cost locations, where there is persistent excess capacity, and where consumers are powerful and face low switching costs.

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Definitions:

Regional Information

Data or details that pertain to a specific geographical area or region.

Non-Price Competition

A marketing strategy where a company tries to differentiate its product or service from competing products on the basis of attributes other than price.

Government Research

Studies and investigations carried out or funded by the government aimed at gaining new scientific or technical knowledge and understanding.

Private Sector

Refers to the part of the economy that is run by individuals and companies for profit, as opposed to being controlled by the government.