In which of the following circumstances is a strategy to be the industry's overall low-cost provider not particularly well matched to the market situation?
A) When the offerings of rival firms are essentially identical, standardized, commodity-like products
B) When there are few ways to achieve differentiation that have value to buyers
C) When price competition is especially vigorous
D) When buyers have widely varying needs and special requirements and the prices of substitute products are relatively high
E) When entry barriers are low and there is a stream of newcomers to the industry

Question

Quizplus · Accepted Answer

When buyers have widely varying needs and special requirements and the prices of substitute products are relatively high, being the industry's overall low-cost provider may not be a successful strategy. This is because buyers may not prioritize price over other factors such as customization, quality, or brand reputation. In such a market situation, a company may need to focus more on differentiation and offering unique value propositions to attract and retain customers.

In Which of the Following Circumstances Is a Strategy to Be