Question

Which of the following is not among the potential advantages of outsourcing value chain activities presently performed in-house?

a.Helping the company assemble diverse kinds of expertise speedily and efficiently
b.Allowing a company to concentrate on its core business, leverage its key resources, and do even better what it already does best
c.Reducing a company's risk exposure to changing technology or shifting buyer preferences
d.Facilitating stronger product differentiation and the achievement of a differentiation-based competitive advantage
e.Streamlining company operations in ways that improve organizational flexibility or speed the time it takes to get new products to market

Answer 1

Outsourcing can offer several advantages like efficiently leveraging expertise, focusing on core activities, reducing risks, and streamlining operations, but is not typically linked to facilitating product differentiation and a differentiation-based competitive advantage.

Step-by-step explanation:

Among the potential advantages of outsourcing value chain activities that are presently performed in-house, the option that is not generally considered an advantage is 'Facilitating stronger product differentiation and the achievement of a differentiation-based competitive advantage'. This option is more associated with in-house efforts toward product innovation and marketing rather than outsourcing. Outsourcing can indeed allow a company to leverage expertise efficiently, concentrate on its core business, reduce risk exposure to changing technology or preferences, and streamline operations to enhance flexibility or market responsiveness.