A competitive strategy predicated on low-cost leadership tends to work best when

Question

A competitive strategy predicated on low-cost leadership tends to work best when
A) there are widely varying needs and preferences among the various buyers of the product or service.
B) there are many market segments and market niches, such that it is feasible for a low-cost leader to dominate the niche where buyers want a budget-priced product.
C) price competition is especially vigorous and the offerings of rival firms are essentially identical, standardized, commodity-like products.
D) buyers prefer that the products/services of competing sellers have widely varying attributes and prices.
E) buyers have high switching costs and there is considerable diversity in how buyers use the product.

Explanation / Answer

C) price competition is especially vigorous and the offerings of rival firms are essentially identical, standardized, commodity-like products.

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