Which of the following statements about a low-cost producer strategy is true?
A)They believe that people will pay more for a product that is unique in some way.
B)They rely on selling products at the lowest possible cost.
C)They often hinge on adjusting to changing environments quickly.
D)Such companies are more likely to take an organic approach to organizational design.
E)They focus on supplying high quality differentiated products to customers.

Question

Quizplus · Accepted Answer

A low-cost producer strategy relies on selling products at the lowest possible cost, which allows the company to offer their products at a lower price than competitors. This approach does not focus on product differentiation or high quality, but rather on cost efficiency. While adjusting to changing environments quickly may be important for any company, it is not a defining characteristic of a low-cost producer strategy. Similarly, the organizational design approach is not explicitly tied to this strategy.

Which of the Following Statements About a Low-Cost Producer Strategy