Nate, the managing director of Juniper Inc., believes that instead of making auto parts on its own, it should rather outsource these tasks to other companies so that the company can focus only on the critical aspects of the final product. His colleague, Salma, believes that the company would have more competitive advantage if it made its own auto parts. Which of the following statements strengthens Nate's belief?
A)Outsourcing will minimize the capital investment Juniper Inc. requires to grow.
B)Outsourcing will lessen the pressure of crowdsourcing so that lesser and more stable options are sought.
C)Outsourcing will help minimize Juniper Inc.'s need to innovate its assets or activities.
D)Outsourcing will minimize suppliers' bargaining power as Juniper Inc. chooses its suppliers.

Question

Quizplus · Accepted Answer

Outsourcing can reduce the need for large capital investments in facilities, equipment, and labor, allowing a company like Juniper Inc. to allocate resources more efficiently and focus on core competencies. This aligns with Nate's belief in focusing on critical aspects of the final product.

Nate, the Managing Director of Juniper Inc