A Focused Low-Cost Strategy Seeks to Achieve Competitive Advantage by

question 82

Multiple Choice

A focused low-cost strategy seeks to achieve competitive advantage by

• A) outmatching competitors in offering niche members an absolute rock-bottom price.
• B) delivering more value for the money than other competitors.
• C) performing the primary value chain activities at a lower cost per unit than can the industry's low-cost leaders.
• D) dominating more market niches in the industry via a lower cost and a lower price than any other rival.
• E) serving buyers in the target market niche at a lower cost and lower price than rivals.

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Definitions:

Convertible Bonds

Debt securities issued by a corporation that can be converted into a specified number of shares of the corporation's stock at the option of the bondholder, typically at certain times during the bond's life.

Equity Method

An accounting technique used to record an investor's proportional share of the investee company's income, expenses, and dividends received.

Investment Balance

The total value of all securities, such as stocks, bonds, and other investments, an individual or entity owns.

Cash Dividends

Earnings paid out to shareholders by a corporation, typically as a profit distribution.