A focused low-cost strategy seeks to achieve competitive advantage by:
A) outmatching competitors in offering niche members an absolute rock-bottom price.
B) delivering more value for the lesser money than other competitors.
C) performing the primary value chain activities at a lower cost per unit than can the industry's low-cost leaders.
D) dominating more market niches in the industry via a lower cost and a lower price than any other rival.
E) serving buyers in a narrow piece of the total market (target market niche)at a lower cost and lower price than rivals.

Question

Quizplus · Accepted Answer

A focused low-cost strategy aims to serve a narrow target market niche at a lower cost and lower price than rivals. This allows the company to differentiate itself from rivals and achieve a competitive advantage by catering to the specific needs of a particular niche without incurring the same costs as larger, more diversified competitors. Outmatching competitors in offering a rock-bottom price, delivering more value for lesser money, and dominating more market niches are not specific to a focused low-cost strategy and may be pursued by other strategies as well. Performing primary value chain activities at a lower cost per unit than the industry's low-cost leaders is a characteristic of a pure low-cost strategy rather than a focused low-cost strategy.

A Focused Low-Cost Strategy Seeks to Achieve Competitive Advantage By