A firm that bases each value creation activity it performs at that location where internal and environmental factors are most conducive to the performance of that activity is bound to realize location economies.

Question

Quizplus · Accepted Answer

Locating a value creation activity in the optimal location for that activity can have one of two effects.It can lower the costs of value creation and help the firm to achieve a low-cost position,and/or it can enable a firm to differentiate its product offering from those of competitors.

A Firm That Bases Each Value Creation Activity It Performs