If the overall cost leadership strategy is to provide sustainable competitive advantage,all activities in the value-chain need to be evaluated including the relationships among the value-chain activities.

Question

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Too often managers make big cuts in operating expenses but do not question year-to-year spending on capital projects. Or managers may decide to cut selling and marketing expenses but ignore manufacturing expenses. Managers should explore all value-chain activities, including relationships among them, as candidates for cost reductions.

If the Overall Cost Leadership Strategy Is to Provide Sustainable