The major difference between a low-cost provider strategy and a focused low-cost strategy is the
A)amount of outsourcing involved.
B)length of the managerial experience curve.
C)size of the buyer group to which a company is appealing.
D)number of upscale attributes incorporated into the product offering.
E)production methods being used to achieve a low-cost competitive advantage.

Question

Quizplus · Accepted Answer

The major difference between a low-cost provider strategy and a focused low-cost strategy is the size of the buyer group to which a company is appealing. A low-cost provider strategy seeks to appeal to a broad range of customers by offering lower prices than competitors, while a focused low-cost strategy targets a smaller, niche market with lower prices. The other answer choices are not accurate differentiators between these two strategies.

The Major Difference Between a Low-Cost Provider Strategy and a Focused