The Big Risk of Employing an Outsourcing Strategy Is

question 36

Multiple Choice

The big risk of employing an outsourcing strategy is

• A)the increased time it takes to respond effectively to the fresh strategic moves of rival firms.
• B)hollowing out the competitive capabilities a company needs to be a master of its own destiny.
• C)impairing a company's capability to be a leader in product innovation.
• D)increased vulnerability to shifts in buyer demand.
• E)increased costs of differentiating the company's product/service from those of competitors.

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Definitions:

Direct Exporting

The process of selling goods directly from a manufacturer to foreign markets without intermediaries.

Selected Markets

Specified segments of the broader market that a company chooses to target for its marketing efforts, products, or services.

Direct Exporting

The sale of products directly to customers or retailers in another country, without the involvement of intermediaries.

Increased Profits

A rise in the amount of net earnings gained from business operations after all costs have been subtracted.