When a company services the broad market and has a low degree of product differentiation, it is most likely
A) pursuing a focus strategy.
B) pursuing a differentiation strategy.
C) pursuing a cost-leadership strategy.
D) stuck in the middle.
E) pursuing both cost leadership and differentiation.

Question

Quizplus · Accepted Answer

When a company services the broad market and has a low degree of product differentiation, it is most likely pursuing a cost-leadership strategy. This means that the company aims to be the cheapest provider in the market and competes on the basis of price rather than product features or quality. This strategy is particularly effective when the market is price-sensitive and customers are primarily looking for the lowest price option.

When a Company Services the Broad Market and Has a Low