Achieving a cost advantage over rivals entails:
A) concentrating on the primary activities portion of the value chain and outsourcing all support activities.
B) being a first-mover in pursuing backward and forward integration and controlling as much of the industry value chain as possible.
C) performing value chain activities more cost-effectively than rivals and finding ways to eliminate or bypass some cost-producing activities altogether.
D) minimizing R&D expenses and paying below-average wages and salaries to conserve on labor costs.
E) producing a standard product,redesigning the product infrequently,and having minimal advertising.

Question

Quizplus · Accepted Answer

Achieving a cost advantage over rivals involves performing value chain activities more cost-effectively than competitors and finding ways to eliminate or bypass some cost-producing activities altogether. This option allows companies to offer products at lower prices and gain a cost advantage over their rivals. The other options may not always lead to a cost advantage and can even be detrimental to the company's operations in certain circumstances.

Achieving a Cost Advantage Over Rivals Entails