As a Management Consultant, Don Simon Suppliers Ltd presented their problems to you as follows:

a) the industry product is essentially standardized, commodity-type items ready available from variety of sellers

b) price competition among rival firms is a dominant force

c) buyers incur low switching cost in changing from one seller to another and

d)) there are few ways to achieve product differentials

Required:

1) What Competitive strategy do you recommed for Don Simon Suppliers Ltd.

2) What are the benefits associated with your recommended strategy.

3) What are the possible risks inherited with such a strategy.