To succeed with a low-cost provider strategy,company managers have to
A) pursue backward or forward integration to detour suppliers or buyers with considerable bargaining power and leverage.
B) move the performance of most all value chain activities to low-wage countries.
C) sell direct to users of their product or service and eliminate use of wholesale and retail intermediaries.
D) (1) perform value chain activities more cost-effectively than rivals and (2) be proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities.
E) outsource the majority of value chain activities.

Question

Quizplus · Accepted Answer

Success in achieving a low-cost edge over rivals comes from eliminating and/or curbing "nonessential" activities and/or bypassing some cost-producing activities; for example,out-managing rivals in performing essential activities and achieving efficiencies in supply chain management and scale economies from full capacity utilization.

To Succeed with a Low-Cost Provider Strategy,company Managers Have to