Which of the following is not an option for remedying a cost disadvantage associated with activities performed by forward channel allies (wholesale distributors and retail dealers)?
A) Shifting to a more economical distribution strategy such as putting more emphasis on cheaper distribution channels (perhaps direct sales via the Internet) or perhaps integrating forward into company-owned retail outlets
B) Trying to make up the difference by cutting costs earlier in the value chain
C) Pressuring distributors-dealers and other forward channel allies to reduce their costs and markups so as to make the final price to buyers more competitive with the prices of rivals
D) Insisting on across-the-board cost cuts in all value chain activities-those performed by suppliers, those performed in-house, and those performed by distributors-dealers
E) Working closely with forward channel allies to identify win-win opportunities to reduce costs

Question

Quizplus · Accepted Answer

Insisting on across-the-board cost cuts in all value chain activities is not a viable option for remedying a cost disadvantage associated with activities performed by forward channel allies. It may not address the specific issue of cost disadvantage in the forward channel and may unnecessarily affect other value chain activities that may not require cost cuts. The other options, such as shifting to a more economical distribution strategy, reducing costs earlier in the value chain, pressuring forward channel allies to reduce costs, and working closely with forward channel allies to identify cost-saving opportunities, may help address the cost disadvantage associated with forward channel activities.

Which of the Following Is Not an Option for Remedying