To Succeed with a Low-Cost Provider Strategy,company Managers Have to

question 21

Multiple Choice

To succeed with a low-cost provider strategy,company managers have to

• A) pursue backward or forward integration to detour suppliers or buyers with considerable bargaining power and leverage.
• B) move the performance of most all value chain activities to low-wage countries.
• C) sell direct to users of their product or service and eliminate use of wholesale and retail intermediaries.
• D) (1) perform value chain activities more cost-effectively than rivals and (2) be proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities.
• E) outsource the majority of value chain activities.

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Definitions:

Indirect Marketing Channel

A distribution pathway that involves intermediaries such as wholesalers and retailers between the producer and the consumer.

Direct Marketing Channel

A marketing approach that allows businesses to communicate directly with the customer, with no intermediaries involved.

Quick Response System

A management strategy aimed at reducing lead times across the supply chain to respond swiftly to customer demands.

Marketing Philosophy

A fundamental belief or approach guiding the marketing strategy of a business, focusing on satisfying customer needs.