A disadvantage of pursuing a low-cost strategy is that:
A)it makes it difficult for fmns to customize their product offerings .
B)price wars make it hard to compete with differentiators.
C)it costs more than a differentiation strategy because of the necessity of high capital investments.
D)powerful buyers are a major threat.
E)it reduces customer retention.

Question

Quizplus · Accepted Answer

A low-cost strategy makes it difficult for firms to customize their product offerings because they are focused on producing products at a low cost, which may limit their ability to offer a wide range of customized options.

A Disadvantage of Pursuing a Low-Cost Strategy Is That