The options for remedying an internal cost disadvantage include
A) investing in productivity-enhancing, cost-saving technological improvements.
B) outsourcing internally performed activities to those able to perform the activities at a lower cost.
C) implementing the use of best practices, particularly for high-cost activities.
D) eliminating some cost-producing activities from the value chain, especially low value-added activities.
E) All of these.

Question

Quizplus · Accepted Answer

All of the options listed can help to remedy an internal cost disadvantage. Investing in productivity-enhancing technology can help to reduce costs and improve efficiency. Outsourcing can allow for lower-cost providers to perform activities that may be more expensive to perform in-house. Implementing best practices can help to optimize processes and reduce waste. Eliminating low-value activities can help to streamline operations and focus on higher-value activities that can improve profitability. Therefore, all of the options listed can be effective in addressing an internal cost disadvantage.

The Options for Remedying an Internal Cost Disadvantage Include