Key activities for firms that compete on the basis of cost would include
A) supplier relationships and logistics
B) marketing and after-sales service
C) research and development and contract manufacturing
D) component supply arrangements and assembly

Question

Quizplus · Accepted Answer

Firms that compete on the basis of cost typically focus on minimizing their expenses in all aspects of their operations, including sourcing raw materials and components, managing supplier relationships, and optimizing logistics and transportation. These activities all relate to the procurement and management of inputs to the production process, which is critical in achieving cost efficiencies. Marketing, research and development, and after-sales service may still be important for these firms, but they would not typically be key activities for competing on cost.

Key Activities for Firms That Compete on the Basis of Cost