A Disadvantage of Pursuing a Low-Cost Strategy Is That

Multiple Choice

A disadvantage of pursuing a low-cost strategy is that:

A) it makes it difficult for firms to customize their product offerings .
B) price wars make it hard to compete with differentiators.
C) it costs more than a differentiation strategy because of the necessity of high capital investments.
D) powerful buyers are a major threat.
E) it reduces customer retention.