Being the Overall Low-Cost Provider in an Industry Has the Attractive

Multiple Choice

Being the overall low-cost provider in an industry has the attractive advantage of

A) building strong customer loyalty and locking customers into its product because customers have high switching costs.
B) giving the firm a very appealing brand image.
C) putting a firm in the best position to win the business of price-sensitive customers and earn profits by setting the floor on market price.
D) putting the company in a strong position to be more profitable than companies pursuing a differentiation strategy.
E) greatly reducing the strong bargaining power of rivals with the key distributors.