Which of the following is not one of the ways that a company can achieve a cost advantage by revamping its value chain?
A)Eliminating distributors and dealers by selling direct to customers
B)Replacing certain value chain activities with faster and cheaper online technology
C)Increasing production capacity and then striving hard to operate at full capacity
D)Relocating facilities so as to curb the need for shipping and handling activities
E)Streamlining operations by eliminating low value-added or unnecessary work steps and activities

Question

Quizplus · Accepted Answer

Increasing production capacity and operating at full capacity is a strategy to achieve economies of scale, not a cost advantage by revamping the value chain. The other options listed involve changes to the value chain to reduce costs.

Which of the Following Is Not One of the Ways