Which of the following is NOT one of the ways that a non-capital-intensive company 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 a way to achieve economies of scale, but it does not involve revamping the value chain. The other options (A, B, D, and E) all involve changing the value chain to reduce costs and gain a competitive advantage.

Which of the Following Is NOT One of the Ways