The strategy that is based on an organization's ability to provide a product or service at a lower cost than its rivals is referred to as:
A) discount
B) differentiation
C) low-cost
D) focused

Question

Quizplus · Accepted Answer

The strategy that is based on offering products or services at a lower cost than its rivals is known as a low-cost strategy. This can be achieved by implementing cost-cutting measures in the value chain, such as optimizing production processes or negotiating lower supplier costs. By providing the same or similar products at a lower price, a company can gain a competitive advantage and appeal to price-sensitive consumers. This approach is different from differentiation, which is based on creating unique products or services that stand out from the competition.

The Strategy That Is Based on an Organization's Ability to Provide