A Company's Biggest Vulnerability in Employing a Best-Cost Provider Strategy

question 60

Multiple Choice

A company's biggest vulnerability in employing a best-cost provider strategy is

• A)relying too heavily on outsourcing.
• B)getting squeezed between firms employing low-cost provider strategies and those using high-end differentiation strategies.
• C)getting trapped in a price war with low-cost leaders.
• D)being timid in cutting its prices far enough below high-end differentiators to win away many of their customers.
• E)not having a sustainable distinctive competence in cost reduction.

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Definitions:

Activating Events

Situations or experiences that trigger a psychological response, often discussed in cognitive-behavioral therapy to address emotional reactions.

Unresolved Conflicts

Psychological term referring to internal or external disputes that an individual fails to find a resolution for, often leading to stress or psychological discomfort.

Rational-Emotive

A psychotherapeutic approach developed by Albert Ellis, focusing on resolving emotional and behavioral problems by changing irrational beliefs into more rational ones.

Cognitive-Behavioral

A psychotherapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.