Question

A competitive strategy of striving to be the low-cost provider is particularly attractive when a. buyers are not price sensitive.b. the industry is made up of a large number or equal-sized rivals.c. there are many ways to achieve product differentiation that have value to buyers.d. price competition is especially vigorous, buyers have low switching costs, and the majority of industry sales are made to a few, large volume buyerse.switching costs are high, price competition is strong, and buyers tend to use the industry's products in many different ways

Answer 1

Answer:

d. price competition is especially vigorous, buyers have low switching costs, and the majority of industry sales are made to a few, large volume buyers.

Explanation:

Michael Porter specified 4 generic strategies for gaining competitive advantage, which are namely,

1. Cost Focus

2. Differentiation Focus

3. Cost Leadership

4. Differentiation

Cost leadership refers to charging lowest price and attaining cost advantage in the industry.

Differentiation refers to designing products with unique attributes.

Striving to be low cost provider would be most attractive when the buyers have low switching costs i.e it is easier and cheap to switch between products and wherein buyers are large and exercise considerable bargaining power.

Thus, the correct option is (d). price competition is especially vigorous, buyers have low switching costs, and the majority of industry sales are made to a few, large volume buyers.