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

question 25

Multiple Choice

A competitive strategy to be the low-cost provider in an industry typically does not work 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 or brand to another.
• D)industry newcomers use low introductory prices to attract buyers and build a customer base.
• E)emergent strategies are required to respond to changes in competitor power.

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Definitions:

Lean Manufacturing

A methodology that focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Cross-Training

Cross-training involves teaching employees the skills and responsibilities of other positions within the organization to increase flexibility and efficiency.

Product-Oriented Layout

The organization of manufacturing processes around a product. Also referred to as product cells.

External Failure Costs

Expenses incurred when products or services fail to meet quality standards after being delivered to the customer, including returns, repairs, and warranties.