Question: The chief difference between a low - cost provider strategy and a focused low - cost strategy is the number of areas in the value
The chief difference between a lowcost provider strategy and a focused lowcost strategy is
the number of areas in the value chain where efforts are being made to achieve costsavingsa lowcost provider strategy is aimed at achieving costsavings throughout the entire value chain whereas a focused lowcost strategy concentrates on achieving costsavings in a few carefullyselected value chain activities.
the degree to which a company uses the appeal of a lower price to attract buyersa lowcost provider strategy entails deeper price discounting than a focused lowcost strategy.
the degree to which the product offering is frills freea lowcost provider strategy is aimed at cutting frills and features throughout the entire value chain whereas a focused lowcost strategy concentrates on achieving costsavings by cutting a select number of frills and features.
the approach a company uses to achieve a lowcost advantagea lowcost provider strategy is aimed at performing value chain activities more cost effectively than rivals whereas a focused lowcost strategy concentrates on utilizing innovative ways to eliminate or bypass the costs of certain nonessential value
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