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The Low-Cost Provider Strategy is powerful when price competition among riva
The Low-Cost Provider Strategy is powerful when price competition among rival sellers is especially vigorous. The products of rival sellers are essentially identical and are readily available from several sellers. There are few ways to achieve product differentiation that have value to buyers. And buyers incur low cost in switching their purchases from on seller to another (Gamble, Peteraf, Thompson Slide 90).
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