GENERAL KNOWLEDGE

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: -Cost Leadership:-means producing a product or service of acceptable quality at consistently lower production costs than competitors so that the firm can offer the product or service at the lowest price in the industry.

Detailed explanation-3: -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.

Detailed explanation-4: -Four generic business-level strategies emerge from these decisions: (1) broad cost leadership, (2) broad differentiation, (3) focused cost leadership, and (4) focused differentiation .

Detailed explanation-5: -Integrated strategy : The integrated strategy uses the principle components of low-cost and differentiation strategies to create a product that is of mid-level quality. A company would use this strategy to attract customers who want the next best level of quality for a lower price than high-quality items.