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Question(s) / Instruction(s):

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; its two options for achieving a low-cost advantage are (1) out-managing rivals in controlling the factors that drive costs and (2) reconfiguring its value chain in ways that deliver a cost edge over rivals

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