The major avenues for achieving a cost advantage over rivals include
A) eliminating or curbing nonessential cost-producing activities and performing essential value chain activities more cost-effectively that rivals.
B) having a management team that accepts below-market salaries.
C) being a first mover in adopting the latest state-of-the-art technologies,especially those relating to low-cost manufacture.
D) outsourcing high-cost activities to offshore vendors.
E) paying lower wages to hourly workers than what rivals are paying workers.

Question

Quizplus · Accepted Answer

A cost advantage can be achieved by eliminating or reducing nonessential cost-producing activities and performing essential value chain activities more efficiently and cost-effectively than rivals. This involves optimizing the value chain and eliminating any activities that do not add value to the final product or service. Other options listed (B, C, D, and E) may provide cost savings, but they are not sustainable or may not be applicable to all industries and situations.

The Major Avenues for Achieving a Cost Advantage Over Rivals