A Disadvantage of Pursuing a Low-Cost Strategy Is That

question 38

Multiple Choice

A disadvantage of pursuing a low-cost strategy is that:

• A)it makes it difficult for fmns to customize their product offerings .
• B)price wars make it hard to compete with differentiators.
• C)it costs more than a differentiation strategy because of the necessity of high capital investments.
• D)powerful buyers are a major threat.
• E)it reduces customer retention.

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Definitions:

Job Security

The probability or likelihood that an individual will retain their job without the risk of becoming unemployed.

Exit Incentives

Benefits offered to employees to encourage voluntary departure, typically used by organizations looking to reduce workforce size.

Medium-Term

A period typically extending from one year to five years, often used to describe goals, planning, or investment horizons.

Layoff

The temporary or permanent termination of employees due to economic downturns, restructuring, or other organizational changes.