Success Factors of Low-Price Strategy Quiz
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Questions and Answers

What is one of the success factors for companies employing a low-price strategy?

  • Extreme cost and process efficiency (correct)
  • Focus on product quality over price
  • High-end advertising campaigns
  • Supplier credit for purchasing

    • Which global company is mentioned as an example of employing a low-price strategy?

  • Apple
  • IKEA (correct)
  • Amazon
  • Walmart

    • How do successful low-price companies procure materials?

  • By relying heavily on bank financing
  • By strictly purchasing for low prices while ensuring high-quality materials (correct)
  • By focusing on self-financing or supplier credit
  • By emphasizing high-quality materials over low prices

    • What do successful low-price companies focus on in their advertisements?

    <p>Price promotions</p> Signup and view all the answers

    How do successful low-price companies finance their operations?

    <p>By avoiding debt entirely</p> Signup and view all the answers

    What is a key factor for companies employing a high-price strategy?

    <p>Superior value to the customer</p> Signup and view all the answers

    Which approach do companies like H&M and Zara take to ensure high efficiency?

    <p>Trimming and slimming all activities</p> Signup and view all the answers

    What is the main reason behind Dell's ability to offer lower prices?

    <p>Configuring to order and eliminating retailer margin</p> Signup and view all the answers

    What is emphasized as a must for companies employing a high-price strategy?

    <p>Consistent and high quality</p> Signup and view all the answers

    What is considered a foundation for companies employing a high-price strategy?

    <p>Innovation and continual improvements</p> Signup and view all the answers

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