Which of the following is not one of the pitfalls of a low-cost provider strategy?
A) Overly aggressive price-cutting
B) Trying to set the industry's price ceiling
C) Not emphasizing avenues of cost advantage that can be kept proprietary or that relegate rivals to playing catch up
D) Becoming too fixated on cost reduction
E) Having the basis for the firm's cost advantage undermined by cost-saving technological breakthroughs that can be readily adopted by rival firms

Question

Quizplus · Accepted Answer

Trying to set the industry's price ceiling is not a common pitfall of a low-cost provider strategy. The other options are all potential pitfalls, such as becoming too fixated on cost reduction and ignoring other areas of innovation or having the basis for a firm's cost advantage undermined by technological advances.

Which of the Following Is Not One of the Pitfalls