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Which of the following strategies is characterized by offering products or services at a low cost?

1) low-cost provider
2) broad differentiation strategy
3) a focused low-cost strategy
4) a focused differentiation strategy
5) best cost provider

1 Answer

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Final answer:

The strategy characterized by offering products at low cost is known as a low-cost provider strategy. It focuses on being the lowest-cost producer to attract a large customer base through competitive pricing, different from strategies that focus on unique features or a balance of cost and quality.

Step-by-step explanation:

The strategy characterized by offering products or services at a low cost is known as a low-cost provider strategy. This approach involves a business aiming to be the lowest-cost producer in its industry or market segment, often to draw in a large customer base through competitive pricing. A similar yet distinct strategy is a focused low-cost strategy, where a company targets a particular niche market and offers low-priced products specifically to that segment. This contrasts with a broad differentiation strategy and a focused differentiation strategy, where the focus is on uniqueness and distinct features rather than price. A best cost provider strives to offer products with superior attributes at lower prices, balancing cost with features to provide value.

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