A competitive strategy aimed at being the industry's low-cost provider works quite well in market situations where buyers have high switching costs, there is considerable diversity in how buyers use the product, and competition revolves around rapidly evolving product features. buyers prefer that the products/services of competing sellers have widely varying attributes and prices, the brand loyalty of buyers is fairly strong, and industry newcomers rarely use low introductory prices to attract buyers and build a customer base. most buyers use the product in the same ways, industry newcomers use introductory low prices to attract buyers and build a customer base, and buyers incur low costs in switching their purchases from one seller to another. there are many market segments and market niches, thus making it easy for a low-cost leader to dominate the niche where buyers want a budget-priced product. buyer needs and uses of the product are diverse, many other sellers are also pursuing a lowcost provider strategy, technological change is fast-paced, and the brand loyalty of buyers is