The owners of Carpo Inc., a watch company, also own a steel company and a leather goods manufacturing company. This relieves them from expenses that they would have to bear, if they had to rely on outside sources for the raw materials needed to make their watches. This enables the company to produce watches at a much lesser cost than other companies in the industry. This scenario best illustrates a ________.
A)complementary service
B)emergent strategy
C)unique value
D)cost advantage

Question

Quizplus · Accepted Answer

The scenario described in the question best illustrates a cost advantage, where owning the steel and leather goods manufacturing companies helps Carpo Inc. produce watches at a lesser cost than other companies in the industry.

The Owners of Carpo Inc