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 such high switching costs) .
B) giving the firm a very appealing brand image.
C) putting a firm in a position to win the business of price sensitive customers, set the floor on market price, and still earn a profit.
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 key suppliers.