In an industry where the product is a standardized commodity, the most effective competitive strategy is often low-cost leadership. Standardized commodities are typically undifferentiated products, so the key competitive advantage comes from being able to produce and sell at the lowest cost. This strategy focuses on achieving cost efficiencies, economies of scale, and rigorous cost control to offer the lowest price in the market, attracting price-sensitive customers.

Best-cost provider (B) combines low cost with differentiation, which is less relevant for standardized commodities.

Broad differentiation (C) and focused differentiation (D) are strategies that rely on distinguishing the product from competitors, which is challenging with standardized commodities.

References

Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.

Grant, R. M. (2016). Contemporary Strategy Analysis. Wiley.