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) do two things: (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 biggest majority of value chain activities.

Question

Quizplus · Accepted Answer

To succeed with a low-cost provider strategy, company managers need to perform value chain activities more cost-effectively than rivals, and revamp the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities. Pursuing backward or forward integration, moving activities to low-wage countries, selling direct to users, and outsourcing may all be part of the strategy, but they are not sufficient on their own. The key is to focus on cost-effectiveness in all value chain activities.

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