A competitive strategy of striving to be the low-cost provider is particularly attractive when: a. Most rivals are trying to be best-cost providers. b. Most buyers use the product in much the same ways, with user requirements calling for a standardized product. c. Most rivals are pursuing focused low-cost or focused differentiation strategies.

The correctt answer is b. Most buyers use the product in much the same ways, with user requirements calling for a standardized product.

Explanation:

Striving to be the representative of the overall low costs of the industry is a powerful competitive approach in the markets with many price-sensitive buyers. A company achieves the leadership of low costs when it becomes the one that provides the products with the lowest costs and is not only one of perhaps several competitors with comparatively low costs. The strategic objective of a low cost company is to reduce them significantly more than its rivals of similar quality. When claiming a cost advantage over rivals, administrators should be careful to include the features and services that buyers consider essential: offering a product too austere undermines the attractiveness of the company's product and can drive buyers away, although its price is lower than competing products.

To achieve maximum efficiency, companies that use a low cost strategy need to get their cost advantage in ways that rivals find it difficult to copy or match. If it is relatively simple or cheap for competitors to imitate the leader's low cost methods, their advantage will last shortly to generate a valuable market advantage.

answer: b. false

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