Identify a way in which companies can create a new business model to achieve cost advantage.
A)By exercising strong bargaining power over suppliers
B)By eliminating activities in the value chain
C)By lowering the wages of the human resources
D)By automating the production line

Question

Quizplus · Accepted Answer

By eliminating activities in the value chain, companies can reduce their costs and create a new business model that achieves cost advantage. For example, a company may decide to outsource non-core activities or rely on digital platforms to streamline the value chain and reduce costs. Exercising strong bargaining power over suppliers or lowering the wages of human resources may not necessarily create a sustainable business model in the long run, and automating the production line may require significant investment and may not be suitable for all industries or products.

Identify a Way in Which Companies Can Create a New