A jeans company is pursuing a low cost strategy and has achieved a position in which it is the lowest cost manufacturer of denim products. One of the ways the company can achieve a competitive advantage against its rivals is to:

a. undercut them in a price war to increase volumes and drive weaker low cost rivals out of business.

b. add features and cost to the jeans to compete with higher priced differentiated brands.

c. build brand loyalty through an intense marketing and media blitz.

d. focus on selling a wide variety of jean styles and colors to appeal to different market segments.

Question

London

Business

23 August, 21:34

A jeans company is pursuing a low cost strategy and has achieved a position in which it is the lowest cost manufacturer of denim products. One of the ways the company can achieve a competitive advantage against its rivals is to:

a. undercut them in a price war to increase volumes and drive weaker low cost rivals out of business.

b. add features and cost to the jeans to compete with higher priced differentiated brands.

c. build brand loyalty through an intense marketing and media blitz.

d. focus on selling a wide variety of jean styles and colors to appeal to different market segments.

+1

Answers (1)

Know the Answer?

Shrinkwrap · Answer 1

a

Explanation:

'Low-cost leadership' can be a competitive advantage as a company can sustain this advantage over a period of time and until it is producing economies of scale