XYZ Company is a low-cost provider. XYZ is most susceptible to
A) the bargaining power of suppliers.
B) the threat of substitutes.
C) new innovations from rival competitors.
D) the bargaining power of customers.

Question

XYZ Company is a low-cost provider. XYZ is most susceptible to
A) the bargaining power of suppliers.
B) the threat of substitutes.  
C) new innovations from rival competitors.
D) the bargaining power of customers.

Quizplus · Accepted Answer

Low-cost providers are most susceptible to new innovations from rival competitors because such innovations can undermine their cost advantage by offering better value or efficiency.

XYZ Company Is a Low-Cost Provider