Illustrates the term Concentrated Low-Cost Strategy briefly

Question

Illustrates the term Concentrated Low-Cost Strategy briefly?

Answer 1

Concentrated Low-Cost Strategy is as follows:

a. A focused strategy based on low cost intends at securing a competitive benefit by serving purchasers in the target market niche at a lower price and lower cost than rival competitors.

b. This strategy has substantial magnetism when a firm can lower costs considerably by limiting its consumer stand to a well-defined purchaser section.

c. Focused low-cost strategies are quite common.

d. Motel 6’s Concentrated Low-Cost Strategy explains how Motel 6 has reserved its costs low in cookery to budget conscious travelers.