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Leokris [45]
2 years ago
15

Perhaps the greatest risk for a company that chooses to pursue an integrated low cost/differentiation strategy is that it will

Business
1 answer:
Amiraneli [1.4K]2 years ago
6 0

The greatest risk of a low-cost provider strategy is getting lost with overly high price reduction and ending up with lower profit.

<h3>Low-cost / low-price advantage </h3>

It results in high profit only if;

  • (1) prices are reduced by less than the size of the cost advantage or
  • (2) the added volume is large enough to bring in a bigger total profit despite lower margins per unit sold.

Therefore, the greatest risk is a low profit.

learn more on low cost strategy from here: brainly.com/question/5516605

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