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QUESTION 11 Different companies across different industries adopt any one of the

ID: 424248 • Letter: Q

Question

QUESTION 11 Different companies across different industries adopt any one of the five generic strategies to gain competitive advantage. Which of the following businesses is most likely to use a low-cost provider strategy? O A fashion clothing line uses sought-after designers and natural fabrics O A mortgage company specializes in lending money for second homes O An online retailer delivers organic groceries overnight O A baby products retailer sells unassembled baby furniture produced in China 0 A dairy products manufacturer uses exotic substitutes to produce lactose-free dairy products

Explanation / Answer

An online retailer delivers organic groceries overnight is the kind of business which is most likely to use a low-cost provider strategy. The reason being is the intense competition in online retailing.

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