Question

Lekaen Goods is a manufacturer of leather goods in the city of Hruanie. As Hruanie already has an influx of existing companies that manufacture leather goods, Lekaen decides to reduce its prices in the market compared to its competitors in order to continue with its growth strategy. Which of the following strategies is Lekaen using in this scenario?

Group of answer choices

Differentiation strategy

Low-cost strategy

High-cost strategy

Greenfield strategy

Answer 1

The answer is given below:

Low-cost strategy

Low-cost strategy is a pricing strategy were an organization offers at a relatively low price compared to their competitors in order to create demand and increase market share. In the above case Lekaen Goods follow the same strategy by offering the goods at low price.