There Are Several Cost Drivers That Can Be Managed in Order

question 97

Multiple Choice

There are several cost drivers that can be managed in order to establish a low-cost leadership advantage.One of the basic cost drivers is:

• A) Access to unique features that turn commodities into differentiated products.
• B) Access to lower-cost input factors including raw materials and labor.
• C) Creating personalized customer service in order to minimize price-sensitivity.
• D) Shifting to small-scale production processes in order to create customized products.

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Definitions:

Global Market Entry

The strategies and methods used by businesses to start selling products or services in international markets.

Licensing

A business arrangement where one company gives another company permission to manufacture its product for a specified payment.

Brand Name

The name given to a product or service by a company, which is used to identify and distinguish it from competitors' products or services.

Licensing

A business arrangement where one party (the licensor) allows another (the licensee) to use its intellectual property, brand, or technology in exchange for a fee or royalty.