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12 August, 08:17

The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the: a. industry life-cycle stage. b. age of the market. c. standardized market price. d. degree of market segmentation. e. market trajectory.

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  1. 12 August, 11:37
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    The correct answer is letter "D": degree of market segmentation.

    Explanation:

    Low-cost strategies consist of manufacturing products at the lowest cost and offering them to relatively lower prices than competitors attracting consumers' attention massively. A broad low-cost strategy implies reducing costs and increasing the market segmentation so more products are sold. A focus low-cost strategy refers to conducting a market segmentation but focusing on selling a lower-cost product specialized for one or a few sectors of the market.

    Thus, the difference between the broad and focus low-cost strategy relies on their market segmentation.
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