Foxtrot Processing Corp. uses a new technology that allows it to produce standard goods in an economical way. In contrast, its competitors strive for uniqueness and use technologies that offer unique products for which customers are willing to pay a premium price. In this case, Foxtrot Processing has an advantage over its competitors because it has adopted a ________ strategy.
A)vertical integration
B)differentiation
C)low-cost
D)premium pricing
E)predatory pricing

Question

Quizplus · Accepted Answer

Foxtrot Processing has adopted a low-cost strategy by using a new technology that allows it to produce standard goods in an economical way, giving it an advantage over competitors who strive for uniqueness and use technologies that offer unique products for which customers are willing to pay a premium price.