Locating a value creation activity in the optimal location for that activity can have one or two effects.First,it can lower the costs of value creation and help the firm to achieve a low-cost position,and/or:
A) it can enable a firm to differentiate its product offering from that of competitors
B) it can lower the cost of marketing and service
C) it can expedite the research and development process
D) it can create political good well
E) all of these answers are correct

Question

Quizplus · Accepted Answer

By locating a value creation activity in the optimal location, a firm can lower its costs of value creation and achieve a low-cost position. This can give the firm a competitive edge over its rivals, as it can offer its products or services at a lower price, which can attract price-sensitive customers. Differentiation, lowering marketing and service costs, expediting R&D, and creating political goodwill are all possible outcomes of locating a value creation activity in an optimal location, but they are not directly related to achieving a low-cost position.

Locating a Value Creation Activity in the Optimal Location for That