Question

A focused low-cost strategy ________.a. involves serving buyers in the target market niche at a lower cost and a lower price than rival competitors. b. is the hardest of the four generic types of competitive strategies to employ successfully. c. involves the use of deep price discounting to capture customers. d. entails trying to wrest market share away from rivals via extra advertising, above-average expenditures for promotional programs, and heavy use of point-of-sale merchandising techniques. e. cannot be sustained over time unless the focuser is aggressive in entering other segments where it also can achieve a low-cost advantage.

Answer 1

Answer:

a. involves serving buyers in the target market niche at a lower cost and a lower price than rival competitors.

Explanation:

A focused low-cost strategy involves serving buyers in the target market niche at a lower cost and a lower price than rival competitors.

There are 2 market strategies involved here: a low-cost strategy in a niche market segment.

Hence, Focused Low-Cost Strategy  is when a business focuses on a niche, and since a small business cannot feasibly achieve low prices on all of its products, it can try and focus on a small niche and try to be the lowest cost provider in the market for that specific niche.

Answer 2

Answer:

a. involves serving buyers in the target market niche at a lower cost and a lower price than rival competitors.

Explanation:

A focused market strategy is one that is specifically targeted at a particular market segment or niche. The firm has the resources to adequate meet the needs of the target segment. This encourages product specialisation where innovations occur in production of a product to make it better satisfy customers.

A focused low cost strategy is one that provides a low cost and budget friendly product that is targeted specifically at aarket niche.