To succeed with a low-cost provider strategy,company managers have to:
A) pursue backward or forward integration to detour suppliers or buyers with considerable bargaining power and leverage.
B) move the performance of most all value chain activities to low-wage countries.
C) sell direct to users of their product or service and eliminate the use of wholesale and retail intermediaries.
D) do two things: (1)perform value chain activities more cost-effectively than rivals,and (2)act proactively in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities.
E) outsource the biggest majority of value chain activities.

Question

Quizplus · Accepted Answer

The low-cost provider strategy requires performing value chain activities more cost-effectively than competitors, as well as proactively revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities. Pursuing backward or forward integration (A), moving all activities to low-wage countries (B), selling direct to users (C), or outsourcing the majority of activities (E) may not necessarily achieve these goals or may not be feasible for all companies.

To Succeed with a Low-Cost Provider Strategy,company Managers Have To