Certified Supply Chain Professional (CSCP) Practice Exam

What is the primary goal of a best cost strategy in business?

1. Maximizing market share

2. Best value at low price

3. Eliminating competition

4. Increasing product variety

The correct answer is: Best value at low price

The primary goal of a best cost strategy in business is to provide the best value at a low price. This approach balances quality and affordability, aiming to deliver products or services that meet customer expectations while maintaining cost-effectiveness. By offering a competitive price without compromising quality, businesses can attract a broader customer base, enhancing customer satisfaction and loyalty. While maximizing market share is important for many companies, it does not encapsulate the essence of a best cost strategy, which centers specifically on value. Similarly, while eliminating competition can be a goal in aggressive business strategies, the best cost strategy focuses more on efficiency and value delivery rather than market dominance alone. Lastly, increasing product variety might appeal to certain markets, but it doesn't directly align with the fundamental objective of providing the best overall value at a low cost. In summary, a best cost strategy's primary commitment is to marry quality and price effectively, reflecting option B.