BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Cost focus 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. One risk of a cost leadership strategy is that the technology may change.

Detailed explanation-2: -A cost focus strategy is when businesses attempt to attract customers based on price. Companies who use this strategy aim to offer the lowest price for their product on the market by undercutting their competitors’ prices.

Detailed explanation-3: -A focused low-cost strategy-concentrating on a narrow buyer segment (or market niche) and outcompeting rivals by having lower costs than rivals and thus being able to serve niche members at a lower price.

Detailed explanation-4: -A cost focus strategy is when an organization tries to attract potential customers solely based on pricing. Organizations that employ this strategy try to beat their rivals’ prices for the least value for their goods on the market. Organizations that apply this method frequently target a definite market segment.

Detailed explanation-5: -Firms that compete based on price and target a narrow market are following a focused cost leadership strategy. Several examples of firms pursuing a focused cost leadership strategy are illustrated below. Redbox rents DVDs and video games through vending machines for only $1.