Mukul faced intense competition in an undifferentiated industry. To address this, he opted for a cost-cutting strategy to attract customers with…

CA Intermediate · Financial Management and Strategic Management · RTP · May 2024
Mukul faced intense competition in an undifferentiated industry. To address this, he opted for a cost-cutting strategy to attract customers with lower pricing. Which factor could pose a risk to Mukul's cost-cutting strategy?
(A) Prompt forecasting of demand for the product or service
(B) Investing in cost-saving technologies and using advanced technology for smart, efficient working
(C) Technological breakthroughs in the industry
(D) Resistance to differentiation until it becomes essential

Suggested Answer and Working Notes:

Correct Answer: Option (C)

Technological breakthroughs in the industry

Topics: Part B: Strategic Management

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