A low-cost provider can use low prices toMultiple choice question.increase its number of employees.persuade potential customers to switch brands.encourage best-cost providers to change competitive strategies.offer premium features and services for its customers.

Low-cost providers need to be especially careful not to make the mistake ofMultiple choice question.amassing too many customers.angering their competitors.being too concerned about employees.cutting prices too aggressively.

A low-cost provider strategy is risky if a competitorMultiple choice question.can create more expensive advertising.goes out of business.discovers a lower-cost value approach.sells an identical product for the same price.

Although successful low-cost providers continually look for ways to save money, they also understand the importance of spending money onMultiple choice question.resources that further eliminate costs.large inventories as a threat to rival companies.expensive perks for managers and employees.frequent, extensive remodeling.

A company with a value chain system that sells directly consumers is able toMultiple choice question.bypass the costs of distributors.reduce the need for cost drivers.increase overhead expenditures.develop better relationships with distributors.

Select all that applyWhich of the following are good opportunities for a company to pursue a low-cost provider strategy?Multiple select question.when rivals offer virtually identical productswhen price competition among competitors is vigorouswhen competitors go out of businesswhen consumers use a product offered by rival companies in the same waywhen there is a shortage of high-priced brands