Being the overall low-cost provider in an industry has the attractive advantage of:
A. building strong customer loyalty and locking customers into its product (because customers have such high switching costs).
B. giving the firm a very appealing brand image.
C. putting a firm in the best position to win the business of price-sensitive customers, set the floor on market price, and still earn a profit.
D. putting the company in a strong position to be more profitable than companies pursuing a differentiation strategy.
E. greatly reducing the strong bargaining power of key suppliers.
Answer: putting a firm in the best position to win the business of price-sensitive customers, set the floor on market price, and still earn a profit.