To succeed with a low-cost provider strategy,company managers have to
A) pursue backward or forward integration to detour suppliers or buyers with considerable bargaining power and leverage.
B) move the performance of most all value chain activities to low-wage countries.
C) sell direct to users of their product or service and eliminate use of wholesale and retail intermediaries.
D) do two things: (1)perform value chain activities more cost-effectively than rivals and (2)be proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities.
E) outsource the majority of value chain activities.

Question

Quizplus · Accepted Answer

The low-cost provider strategy requires performing value chain activities more cost-effectively than rivals and being proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities. Options A, B, and E are all strategies that could be used, but they are not the primary approach in achieving a low-cost provider strategy. Option C could be part of the overall strategy, but it is not sufficient on its own.

To Succeed with a Low-Cost Provider Strategy,company Managers Have to