Which of the following is NOT one of the ways that a company that a non-capital-intensive can achieve a cost advantage by revamping its value chain?
A) Creating a direct sales force and bypassing activities and costs of distributors and dealers
B) Conducting sales operations at the company's website
C) Increasing production capacity and then striving hard to operate at full capacity
D) Relocating facilities so as to curb the cost for shipping and handling activities
E) Streamlining operations by eliminating low value-added or unnecessary work steps and activities

Question

Quizplus · Accepted Answer

Increasing production capacity and striving to operate at full capacity is not a way for a non-capital-intensive company to achieve a cost advantage by revamping its value chain. This is because it involves increasing capital expenditure and investment in equipment and facilities, which goes against the non-capital-intensive nature of the company. The other options, such as creating a direct sales force, conducting online sales, relocating facilities, and streamlining operations, are all ways in which a non-capital-intensive company can revamp its value chain to achieve a cost advantage.

Which of the Following Is NOT One of the Ways