Which one of the following provides the most accurate picture of whether a company is cost competitive with its rivals?
A) How the costs of the company's internally performed activities (its own value chain) compare against the costs of the internally-performed activities of rival companies
B) Costs in the value chains of the company's suppliers
C) Costs in the value chains of a company's distributors and retail dealers and forward channel allies
D) The costs of a company's internally performed activities, costs in the value chains of both the company's suppliers and forward channel allies, and how all these costs compare against the costs that make up the value chain systems employed by rival firms
E) Whether the company has a longer or shorter value chain than its close rivals

Question

Quizplus · Accepted Answer

The most accurate picture of whether a company is cost competitive with its rivals can be obtained by analyzing the costs of a company's internally performed activities, costs in the value chains of both the company's suppliers and forward channel allies, and comparing these costs with the costs that make up the value chain systems employed by rival firms. This approach provides a comprehensive view of a company's cost competitiveness, taking into account all the relevant factors that affect its costs, including its internal operations, its supply chain, and its distribution channels. Options A, B, and C are all limited in scope and do not provide a complete picture of a company's cost competitiveness, whereas option E is irrelevant to the analysis of cost competitiveness.

Which One of the Following Provides the Most Accurate Picture