Question

Please help!!

Which of the following is not a potential disadvantage of a low-cost strategy?

A) Consumer tastes can change over time.

B) Firms with access to better technology can obtain even lower prices.

C) Firms with a focus strategy can potentially have prices just as low.

D) Other firms can neutralize the advantage by cutting prices to the same level.

Answer 1

d. other firm can neutralize the advantage by cutting

Answer 2

Which of the following is not a potential disadvantage of a low-cost strategy? D. Other firms can neutralize the advantage by cutting prices to the same level.

A low-cost strategy helps a company stimulate demand while gaining market share. Any type of company is able to use this strategy, but they all may set different prices that reflect being low on within their market. A low-cost strategy may help them gain new customers because they are setting the prices on their products lower than the average.