WHEN A LOW-COST PROVIDER STRATEGY WORKS BEST
WHEN A LOW-COST PROVIDER STRATEGY WORKS BEST
- Price competition among rivals is dominant competitive force
- Industry’s product is a commodity-type item readily available
- Few ways to achieve product differentiation that have value to buyers
- Most buyers have similar needs/requirements
- Buyers incur low switching costs changing sellers
- Buyers are large & have significant bargaining power