BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Convincing rivals not to enter a price war, protection from customer pressure to lower prices, and the ability to better withstand cost increases from suppliers characterize which type of competitive strategy?
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overall cost leadership
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differentiation
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differentiation focus
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cost leadership focus
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Explanation:
Detailed explanation-1: -Focused Cost Leadership is a low-cost competitive strategy that focuses on a particular buyer group or geographic market and attempts to serve only this niche, to the exclusion of others.
Detailed explanation-2: -Cost leadership strategy allows the companies to reduce the threats of new entrants as they create barriers for them. It allows companies to reduce rivalry as competitors are likely to avoid price wars with the company.
Detailed explanation-3: -One way companies can use cost advantage is by pricing their items close to their competitors, but then they earn more profits by reducing production costs.
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