A Competitive Strategy of Striving to Be the Low-Cost Provider

question 13

Multiple Choice

A competitive strategy of striving to be the low-cost provider is particularly attractive when

• A)buyers are not price sensitive.
• B)the industry is made up of a large number of or equal-sized rivals.
• C)there are many ways to achieve product differentiation that have value to buyers.
• D)price competition is especially vigorous,buyers have low switching costs,and the majority of industry sales are made to a few large-volume buyers.
• E)switching costs are high,price competition is strong,and buyers tend to use the industry's products in many different ways.

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Definitions:

Transactional Work

Routine, day-to-day tasks that support the basic operations of a business, typically requiring less creativity and more process-oriented skills.

HR Department

The department within an organization responsible for activities related to employees, including hiring, training, compliance, and benefits.

Rule Based

A system or approach that applies predefined rules to decision-making, often used in programming and policy implementation.

Repetitive Activities

Actions or tasks that are performed in a similar manner on a regular basis.