A Competitive Strategy to Be the Low-Cost Provider in an Industry

question 27

Multiple Choice

A competitive strategy to be the low-cost provider in an industry works well when

• A) price competition among rival sellers is especially vigorous.
• B) commodity-based product prevails and minimal differentiation exists.
• C) buyers incur low costs in switching their purchases from one seller/brand to another.
• D) industry newcomers use low introductory prices to attract buyers and build a customer base.
• E) All of these.