A Low-Cost Provider Strategy Becomes Increasingly Appealing And Competitively Powerful When

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A Low-Cost Provider Strategy Becomes Increasingly Appealing And Competitively Powerful When

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¥ Price competition among rival sellers is vigorous ¥ The products of rival sellers are essentially identical and supplies are readily available from several eager suppliers ¥ It is hard to achieve product differentiation in ways that buyers value ¥ Most buyers use different brands of the product in same ways ¥ Buyers incur low costs in switching purchases from one seller to another ¥ A big fraction of the industry's sales are made to large-volume buyers with significant power to bargain down prices ¥ Industry newcomers use introductory low prices to attract buyers and build a customer base
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