A group of shoe manufacturing firms purchases raw materials collectively from a single supplier to obtain better deals. This is an example of obtaining competitive advantage by ________.

Question

Quizplus · Accepted Answer

By collectively purchasing raw materials, the shoe manufacturing firms are establishing an alliance to improve their purchasing power and obtain better deals, thereby reducing their costs and increasing their competitive advantage. Differentiating the industry, establishing standards, and enhancing products are other ways to obtain competitive advantage but are not relevant to the given scenario.

A Group of Shoe Manufacturing Firms Purchases Raw Materials Collectively