Question

When a company services the broad market and has a low degree of product differentiation, it is most likely Group of answer choices pursuing a differentiation strategy. pursuing a cost-leadership strategy. pursuing a focus strategy. pursuing both cost leadership and differentiation. stuck in the middle.

Answer 1

When a company services the broad market and has a low degree of product differentiation, it is most likely pursuing a cost-leadership strategy.

What is Cost Leadership?

Cost leadership is a term used when a company projects itself as the cheapest manufacturer or provider of a particular product or commodity in a competition. It is difficult to deploy the strategy because the management must constantly work on reducing cost at every level to remain competitive.

Cost leadership is a part of marketing strategy. Although, it is highly effective in gaining market share as well as drawing the customers' attention, it is difficult to deploy. The management team of the company has to constantly work towards reducing the cost of not just one product, but the entire range of products in the company's portfolio.

What Is Cost Leadership Strategy?

Cost leadership is a business-level strategy employed by companies who wish to gain a competitive advantage by being the lowest-cost producer of a service, production process, or commodity.

Therefore, we can conclude that the correct option is it is most likely pursuing a cost-leadership strategy.

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