Question

Nate, the managing director of Juniper Inc., believes that instead of making auto parts on its own, it should rather outsource these tasks to other companies so that the company can focus only on the critical aspects of the final product. His colleague, Salma, believes that the company would have more competitive advantage if it made its own auto parts. Which of the following statements strengthens Nate's belief?

Answer 1

Outsourcing the production of auto parts can allow Juniper Inc. to focus on its core competencies and gain a competitive advantage in the market.

Step-by-step explanation:

One advantage of outsourcing the production of auto parts for Juniper Inc. is that it allows the company to focus on its core competencies. By outsourcing non-core tasks, the company can allocate its resources and expertise towards developing and improving the critical aspects of the final product. This can lead to better quality, innovation, and a competitive advantage in the market. Outsourcing also allows the company to take advantage of specialization and economies of scale. By partnering with specialized suppliers, Juniper Inc. can benefit from their expertise and potentially lower production costs.