When Clean Motors condensed all its parts factories into one large location,the company increased research and development and customer service,and decreased its sales force.How would this practice help the company to become a low-cost producer?

Question

Quizplus · Accepted Answer

Condensing all its parts factories into one large location allowed Clean Motors to benefit from economies of scale by constructing efficient large-scale facilities. This can help the company to reduce its production costs and become a low-cost producer. Increasing research and development can also help the company to improve efficiency and reduce costs, while decreasing the sales force can help to cut expenses. However, none of the options listed suggest that the company created a unique product, invested in branding, or created a unique customer service process, and the option about using the latest machines is not directly related to the scenario presented.

When Clean Motors Condensed All Its Parts Factories into One