A company's biggest vulnerability in employing a best-cost provider strategy is:

A company's biggest vulnerability in employing a best-cost provider strategy is: 



A. relying too heavily on outsourcing.

B. getting squeezed between the strategies of firms employing low-cost provider strategies and high-end differentiation strategies.

C. getting trapped in a price war with low-cost leaders.

D. being timid in cutting its prices far enough below high-end differentiators to win away many of their customers.

E. not having a sustainable distinctive competence in cost reduction.


Answer: getting squeezed between the strategies of firms employing low-cost provider strategies and high-end differentiation strategies.


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