The options for remedying a supplier-related cost disadvantage include
A)pressuring suppliers for more favorable prices, switching to lower-priced substitute inputs, and collaborating closely to identify mutual cost-saving opportunities.
B)instituting forward vertical integration.
C)shifting into the production of substitute products.
D)shifting from a low-cost leadership strategy to a differentiation or focus strategy.
E)cutting selling prices and trying to win a bigger market share.

Question

Quizplus · Accepted Answer

Pressuring suppliers for more favorable prices, switching to lower-priced substitute inputs, and collaborating closely to identify mutual cost-saving opportunities are all viable options for remedying a supplier-related cost disadvantage. In contrast, instituting forward vertical integration, shifting into the production of substitute products, and cutting selling prices without addressing the underlying cost disadvantage are all expensive and risky strategies that may not effectively address the issue. Additionally, shifting from a low-cost leadership strategy to a differentiation or focus strategy has its own set of challenges and may not be the best course of action in this situation. Therefore, choosing option A is the best course of action in response to a supplier-related cost disadvantage.

The Options for Remedying a Supplier-Related Cost Disadvantage Include