Firms that charge relatively low prices and offer substantial differentiation ar
ID: 444354 • Letter: F
Question
Firms that charge relatively low prices and offer substantial differentiation are following a best-cost strategy. A best cost strategy can be an effective level strategy to the extent that a firm whose fixed costs and overhead are very low relative to the competition.
What is an example of an industry where you think a best-cost strategy could be successful?
How would you differentiate a company to achieve this success in this industry?
Provide an example of a firm in Jacksonville that is following a best cost strategy? Explain
Explanation / Answer
What is an example of an industry where you think a best-cost strategy could be successful?
Retail stores like Walmart I believe are the best example on best-cost strategy.
How would you differentiate a company to achieve this success in this industry?
The company needs to study the market, the competition and possible substitution products, they need to work with the best suppliers so they can achieve success
Provide an example of a firm in Jacksonville that is following a best cost strategy?
For example McDonald`s follows the best cost strategy.
McDonald's has been extremely successful with this strategy by offering basic fast-food meals at low prices. They are able to keep prices low through a division of labor that allows it to hire and train inexperienced employees rather than trained cooks. I
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