Question $11$

$4$ Points

Companies that position themselves strategically in the marketplace along the lower cost dimension and without any type of differentiation are likely to be successful over the short$-$term. However, this is a risky strategy over the long term because:

Consumers ultimately will abandon products that they perceive as poor quality regardless of cost$.$

Consumers gain purchase power and they want to spend their money in more upscale brands.

Productivity decreases

Offshoring