Assume a Firm Is at a Cost Disadvantage with Rivals

question 108

Essay

Assume a firm is at a cost disadvantage with rivals because of higher supplier-related costs than key rivals. Identify three strategic moves that it can make to restore cost parity.

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Definitions:

Social Comparison

The process of comparing oneself to others in order to evaluate or enhance one's own abilities or opinions.

Reward Power

A form of power based on the ability to distribute rewards that others view as valuable, often used in organizational contexts.

Small Informal Groups

Collectives of individuals who come together spontaneously or for a specific purpose without a formal structure.

Propinquity

The proximity or physical closeness between people, which can affect their likelihood to form relationships or connections.