Which of the following is a driver that permits a low-cost strategy to be successful?
A) When customers tend to expect different features and benefits from products within a category
B) When buyers and suppliers have weak bargaining power, lowering the pressure on the industry's profit margins
C) When there are high industry entry barriers, diminishing the potential need for incumbents to compete on price
D) When there is a standardization of products or services among industry rivals

Question

Quizplus · Accepted Answer

Standardization of products or services among industry rivals can lead to cost savings through economies of scale, making it easier for companies to offer lower prices while maintaining profitability. This allows companies to successfully implement a low-cost strategy. The other options do not necessarily facilitate a low-cost strategy.

Which of the Following Is a Driver That Permits a Low-Cost