The Major Avenues for Achieving a Cost Advantage Over Rivals

question 41

Multiple Choice

The major avenues for achieving a cost advantage over rivals include

• A) revamping the firm's value chain to eliminate or bypass some cost-producing activities and/or out-managing rivals in the efficiency with which value chain activities are performed.
• 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.

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Definitions:

Operations

The activities and processes used in making both tangible and intangible products.

Production

The activities and processes used in making tangible products; also called manufacturing.