BASIC COMPUTER CONCEPTS
INFORMATION SYSTEMS VS INFORMATION TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Being a low cost producer
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Differentiating products
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Using low cost materials of low quality
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Changing the scope of the competition
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Detailed explanation-1: -Low-cost strategy enables the firm to sell its product/service with a lower price compared to its competitors because of lower costs of producing products/service; as a result of this, they win a competitive advantage in the industry.
Detailed explanation-2: -For example, Walmart and Costco are leaders in the overall low-cost strategy. IKEA is a low-cost leader using a focused low-cost strategy, appealing to a particular segment of the overall market.
Detailed explanation-3: -A low-cost provider seeks to sell its products at the lowest price it can, while still making a profit so that it can draw customers to the market. This is the broad version of the low-cost strategy because such companies try to appeal to a broad market.