Which of the following, if true, strengthens the argument for being a

QUESTION

Which of the following, if true, strengthens the argument for being a low-cost player?

A) Customers who believe that they need high levels of customer service are more likely to choose a niche retailer.
B) An expected upturn in the economy will increase consumer purchasing power.
C) Being the low-cost player requires a company to examine every aspect of its supply chain in order to identify opportunities to improve efficiency.
D) EZTrade has a longer history selling clothes for men and women then it has selling clothes for children.
E) The retailer’s logistics operations are more efficient than the industry norm.

ANSWER

Answer: E
Explanation: E) Competing on price isn’t easy. Not every organization can do it. However, organizations that are already efficient are better suited to try to win as a low-cost player. So Choice E strengthens the argument. Choices A, B, and C weaken the argument by suggesting problems with the low-cost approach. Choice D: The length of activity in different product lines doesn’t help resolve the question of whether low cost is the way to go.