Which of the following is not one of the ways that a company can achieve a cost advantage by revamping its value chain?
A) Cutting out 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 may help a company to achieve economies of scale and reduce the cost per unit, but it is not a way to revamp the value chain. Revamping the value chain refers to optimizing and rearranging the activities that create value for the customer, such as production, distribution, marketing, and sales.

Which of the Following Is Not One of the Ways