A focused low-cost strategy can lead to attractive competitive advantage when:
A. buyers are looking for the best value at the best price.
B. buyers are looking for a budget-priced product.
C. buyers are price sensitive and are attracted to brands with low switching costs.
D. demand in the target market niche is growing rapidly and a company can achieve a big enough volume to fully capture all the available scale economies.
E. a firm can lower costs significantly by limiting its customer base to a well-defined buyer segment.
Answer: a firm can lower costs significantly by limiting its customer base to a well-defined buyer segment.