In Order to Be Successful with a Low-Cost Leadership Strategy

question 59

Multiple Choice

In order to be successful with a low-cost leadership strategy, company managers have to

• A)eliminate wholesale and retail intermediaries and instead sell directly to users of their product or service.
• B)perform value chain activities more cost-effectively than rivals and be proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities.
• C)outsource the majority of value chain activities to nations that have lower wage rates and fewer regulations.
• D)develop and market products and services at that absolute lowest possible cost.
• E)pursue backward or forward integration to deter suppliers or buyers with considerable bargaining power and leverage.

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