A focused low-cost strategy seeks to achieve competitive advantage by:

• A. serving all market segments with the lowest possible prices
• B. providing unique products to a broad market at premium prices
• C. targeting a specific market segment and differentiating products through innovation
• D. targeting a specific market segment and offering products at lower costs than competitors

Answer: (D)

Verified step by step guidance

1. Understand the concept of a focused low-cost strategy: it involves targeting a specific market segment rather than the entire market.
2. Recognize that the goal of this strategy is to achieve competitive advantage by offering products or services at a lower cost than competitors within that specific segment.
3. Differentiate this from other strategies such as broad low-cost strategies (which serve all market segments with low prices) or differentiation strategies (which focus on unique products or innovation).
4. Identify that the correct approach combines focus (narrow market segment) with cost leadership (lower costs/prices) to attract price-sensitive customers in that segment.
5. Summarize that the focused low-cost strategy is about targeting a specific market segment and offering products at lower costs than competitors, rather than serving all segments or charging premium prices.