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The Big Danger or Risk of a Best-Cost Provider Strategy

Question 102

Multiple Choice

The big danger or risk of a best-cost provider strategy is


A) that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features.
B) not establishing strong alliances and partnerships with key suppliers.
C) that rivals with low-cost provider strategies will be able to steal away some customers on the basis of a lower price, and high-end differentiators will be able to steal away customers with the appeal of better product attributes.
D) that it will be unable to achieve top-notch quality at a rock-bottom cost.
E) becoming too highly integrated and not relying enough on outsourcing.

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