To succeed with a low-cost provider strategy, company managers have to:

To succeed with a low-cost provider strategy, company managers have to: 



A. pursue backward or forward integration to detour suppliers or buyers with considerable bargaining power and leverage.

B. move the performance of most all value chain activities to low-wage countries.

C. sell direct to users of their product or service and eliminate the use of wholesale and retail intermediaries.

D. do two things: (1) perform value chain activities more cost-effectively than rivals, and (2) act proactively in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities.

E. outsource the biggest majority of value chain activities.


Answer: do two things: (1) perform value chain activities more cost-effectively than rivals, and (2) act proactively in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities.


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