Which of the following is NOT an option for remedying a cost disadvantage associated with activities performed by forward channel allies (wholesale distributors and retail dealers)?
A) changing to a more economical distribution strategy such as putting more emphasis on cheaper distribution channels (perhaps direct sales via the Internet) or perhaps integrating forward into company-owned retail outlets
B) enhancing differentiation through activities such as cooperative advertising at the forward end of the value chain
C) pressuring distributors/dealers and other forward-channel allies to reduce their costs and markups
D) insisting on across-the-board cost cuts in all value chain activities-those performed by suppliers, those performed in-house, and those performed by distributors/dealers
E) collaborating with forward channel allies to identify win-win opportunities to reduce costs

Question

Quizplus · Accepted Answer

Insisting on across-the-board cost cuts in all value chain activities is not an option for remedying a cost disadvantage associated with activities performed by forward channel allies. This is because cost-cutting in other activities performed by suppliers or in-house may not necessarily address the cost disadvantage caused by forward channel activities. Thus, this option may not be effective in reducing the cost disadvantage associated with forward channel allies.

Which of the Following Is NOT an Option for Remedying