Achieving a cost advantage over rivals entails:
A. concentrating on the primary activities portion of the value chain and outsourcing all support activities.
B. being a first-mover in pursuing backward and forward integration and controlling as much of the industry value chain as possible.
C. performing value chain activities more cost-effectively than rivals and finding ways to eliminate or bypass some cost-producing activities altogether.
D. minimizing R&D expenses and paying below-average wages and salaries to conserve on labor costs.
E. producing a standard product, redesigning the product infrequently, and having minimal advertising.
Answer: performing value chain activities more cost-effectively than rivals and finding ways to eliminate or bypass some cost-producing activities altogether.