Which of the following would most likely be best for a manufacturer with low specificity in a highly volatile market?
A) engaging in forward vertical integration
B) customizing physical facilities
C) acquiring competitors
D) expanding globally
E) outsourcing

Question

Quizplus · Accepted Answer

Outsourcing would be the best choice for a manufacturer with low specificity in a highly volatile market because it allows the manufacturer to be flexible in adjusting production levels and managing costs, without committing to significant capital investments such as customizing physical facilities, acquiring competitors or engaging in forward vertical integration. Similarly, expanding globally may be too risky during volatile market conditions. Outsourcing allows manufacturers to focus on their core competencies, while relying on third-party suppliers for specialized tasks.

Which of the Following Would Most Likely Be Best for a Manufacturer