A company can translate a low-cost advantage over rivals into attractive profit performance by employing an...

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A company can translate a low-cost advantage over rivals into attractive profit performance by employing an everyday low price strategy to win the business of price sensitive and bargain- hunting buyers. aggressively attacking rivals with price cuts--the industry's lowest-cost producer is a powerful position to profit from a price war. starting a price war, driving high-cost rivals out of business, and then recovering any lost profits later by charging higher prices once competition from rivals has been permanently weakened. either (1) charging a price comparable to other low-priced rivals, being content with the resulting sales volume and market share, and relying upon the low-cost edge over rivals to earn a bigger profit margin per unit sold, thereby boosting the firm's total profits and return on investment or (2) using its low-cost edge to underprice competitors and attract price sensitive buyers in great enough numbers to increase total profits. stripping frills and features from its product offering that are not highly valued by price sensitive or bargain-hunting buyers and then employing an aggressive strategic offensive to charge the lowest possible price and steal sales and market share away from rivals. A company can translate a low-cost advantage over rivals into attractive profit performance by employing an everyday low price strategy to win the business of price sensitive and bargain- hunting buyers. aggressively attacking rivals with price cuts--the industry's lowest-cost producer is a powerful position to profit from a price war. starting a price war, driving high-cost rivals out of business, and then recovering any lost profits later by charging higher prices once competition from rivals has been permanently weakened. either (1) charging a price comparable to other low-priced rivals, being content with the resulting sales volume and market share, and relying upon the low-cost edge over rivals to earn a bigger profit margin per unit sold, thereby boosting the firm's total profits and return on investment or (2) using its low-cost edge to underprice competitors and attract price sensitive buyers in great enough numbers to increase total profits. stripping frills and features from its product offering that are not highly valued by price sensitive or bargain-hunting buyers and then employing an aggressive strategic offensive to charge the lowest possible price and steal sales and market share away from rivals.

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ANSWER THE CORRECT OPTION IS D The company cannot adopt aggressive price ... View the full answer