The options for remedying a cost disadvantage associated with activities performed by forward channel allies include
A)switching to lower-priced substitutes.
B)pressuring forward channel allies to reduce their costs and markups.
C)shifting into the production of substitute products.
D)shifting from a differentiation strategy to a best-cost strategy or focus strategy.
E)implementing a benchmarking program and adopting best practices.

Question

Quizplus · Accepted Answer

Pressuring forward channel allies to reduce their costs and markups can help to address the cost disadvantage associated with their activities. This approach can help to achieve greater cost efficiency and make the products more competitive in the marketplace. Other options such as switching to lower-priced substitutes or shifting to a different strategy may not be viable or effective solutions in all situations. Implementing a benchmarking program and adopting best practices can be useful in identifying opportunities for cost savings, but may also require a significant investment in time and resources. Shifting into the production of substitute products may require a significant shift in business focus and may not be feasible or desirable for all companies.

The Options for Remedying a Cost Disadvantage Associated with Activities