In order to be successful with a low-cost leadership strategy, company managers have to
A)eliminate wholesale and retail intermediaries and instead sell directly to users of their product or service.
B)perform value chain activities more cost-effectively than rivals and be proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities.
C)outsource the majority of value chain activities to nations that have lower wage rates and fewer regulations.
D)develop and market products and services at that absolute lowest possible cost.
E)pursue backward or forward integration to deter suppliers or buyers with considerable bargaining power and leverage.

Question

Quizplus · Accepted Answer

To be successful with a low-cost leadership strategy, it is essential to perform value chain activities more cost-effectively than competitors. This can be done by being proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities. By doing so, the company can reduce its costs and offer products or services at a lower price than competitors, which leads to a competitive advantage. The other options may also play a role in achieving low-cost leadership, but they are not as crucial as performing value chain activities in a cost-effective manner.

In Order to Be Successful with a Low-Cost Leadership Strategy