Responding to pressures for cost reduction requires a firm to try to lower the costs of value creation.

Question

Quizplus · Accepted Answer

This statement is true. When a firm faces pressures for cost reduction, it needs to find ways to lower the costs associated with creating value for its customers. This can involve various strategies, such as optimizing production processes, reducing overhead expenses, or sourcing materials and labor more efficiently. By doing so, the firm may be able to maintain or improve the quality of its offerings while lowering prices, which can help it stay competitive in the marketplace.

Responding to Pressures for Cost Reduction Requires a Firm to Try