Question

The business-to-business cleaning supply company, Ecolab, encouraged a leading competitor, Diversity, to adopt a strategy to go after low-volume, high-margin customers. What Ecolab knew that Diversity did not is that the high servicing costs involved with the segment makes it unprofitable. Ecolab bid high enough to lose the contracts to Diversity but low enough to ensure that Diversity lost money. This is an example of the strategy to_______.

Answer 1

Answer:

Raise competitor costs.

Explanation:

Raising competitor costs is basically a strategy to gain market share.