A Company's Biggest Vulnerability in Employing a Best-Cost Provider Strategy

Multiple Choice

A company's biggest vulnerability in employing a best-cost provider strategy is

A) relying too heavily on outsourcing.
B) getting squeezed between firms employing low-cost provider strategies and those using high-end differentiation strategies.
C) getting trapped in a price war with low-cost leaders.
D) being timid in cutting its prices far enough below high-end differentiators to win away many of their customers.
E) not having a sustainable distinctive competence in cost reduction.