A disadvantage of pursuing a low-cost strategy is that:
A) it makes it difficult for the firm to customize its product offerings.
B) price wars make it hard to compete with differentiators.
C) it makes it easier for rivals to enter the firm's market.
D) it makes it difficult to respond to demands from deep price discounts from powerful buyers and still make money.
E) it makes it difficult to absorb cost increases that may be passed on downstream by powerful suppliers.

Question

Quizplus · Accepted Answer

A low-cost strategy focuses on minimizing costs, which can limit the ability to customize products, as customization often involves additional costs.

A Disadvantage of Pursuing a Low-Cost Strategy Is That