Foxtrot Processing Corp. uses a new technology that allows it to produce standard goods in an economical way. In contrast, its competitors strive for uniqueness and use technologies that offer unique products for which customers are willing to pay a premium price. In this case, Foxtrot Processing has an advantage over its competitors because it has adopted a strategy.

Low cost strategy

Explanation:

Low cost strategy is a type of price strategy used by a company in increasing their market share by offering a product that is similar to that being offered by other companies in the same market niche, but at a lower price. This is done by effectively lowering costs in the production process, while maintaining standards that meet consumer demands.

Customers in the market would willingly opt for a similar product of good standard that is offered at a lower price when compared with others that has a higher price tag.

Foxtrot Processing Corp. can be said to have adopted a low cost strategy as they produce similar standard goods in an economical way, in order to drive demand and secure a high market share against its competitors.

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