GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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business aims to be the low cost producer in its industry
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business aims to sell at the lowest price in its industry
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business aims to offer something unique to consumers
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business aims to lower costs
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Detailed explanation-1: -A low-cost producer is capable of making a substitute good or providing a substitute service for a lower cost than other companies. They can price their goods on par with or just below the market, undercutting their competition. By doing so, companies can increase their market share and raise profits.
Detailed explanation-2: -A pricing strategy in which a company offers a relatively low price to stimulate demand and gain market share.
Detailed explanation-3: -Cost Leadership In cost leadership, a firm sets out to become the low cost producer in its industry. The sources of cost advantage are varied and depend on the structure of the industry. They may include the pursuit of economies of scale, proprietary technology, preferential access to raw materials and other factors.
Detailed explanation-4: -Cost Leadership Strategy This generic strategy calls for being the low cost producer in an industry for a given level of quality. The firm sells its products either at average industry prices to earn a profit higher than that of rivals, or below the average industry prices to gain market share.
Detailed explanation-5: -Best-cost strategy, or integrated low-cost differentiation strategy, is a method of producing high-quality products at low prices. It focuses on giving customers items that satisfy their expectations and are within their budget.