BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Lower
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Higher
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Follow the price of competitors
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None of these
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Detailed explanation-1: -A company can become a low-cost price leader by having a dominant market share, having a better understanding of market forces, or by collusion with other businesses in the industry.
Detailed explanation-2: -Competitive pricing is the process of selecting strategic price points to best take advantage of a product or service based market relative to competition.
Detailed explanation-3: -A market leader is a company with the largest market share in an industry that can often use its dominance to affect the competitive landscape and direction the market takes. A market leader typically enjoys the largest market share or the largest percentage of total sales in a given market.
Detailed explanation-4: -Overall lower cost or cost leadership refers to the strategy where a firm’s competitive advantage is based on the bet that it can develop, manufacture, and distribute products more efficiently than competitors.