The major avenues for achieving a cost advantage over rivals include:
A. performing value chain activities more cost-effectively than rivals or revamping the firm's overall value chain to eliminate or bypass some cost-producing activities.
B. having a management team that is highly skilled in cutting costs.
C. being a first-mover in adopting the latest state-of-the-art technologies, especially those relating to low-cost manufacture.
D. outsourcing high-cost activities to cost-efficient vendors.
E. paying lower wages and salaries than rivals.
Answer: performing value chain activities more cost-effectively than rivals or revamping the firm's overall value chain to eliminate or bypass some cost-producing activities.