Question

For a best-cost provider strategy to be successful, a company must have:

a) Excellent supply chain capabilities and product design expertise.

b) Economies of scope or greater scale economies than rivals.

c) A superior value chain configuration and unmatched efficiency in managing essential value chain activities.

d) Superior product innovation skills and manufacturing capabilities.

Answer 1

a) Excellent supply chain capabilities and product design expertise.

A successful best-cost provider strategy requires excellent supply chain capabilities, economies of scale, product design expertise, and efficient value chain management, along with an integration of labor rights protection.

Step-by-step explanation:

For a best-cost provider strategy to be successful, a company must excel in various areas. A key area is supply chain capabilities which can greatly benefit from advancements in technology, transportation methods, and policies ensuring continuity during emergencies. Additionally, companies need to work towards economies of scale, where increasing production leads to lower costs per unit. This principle is well-demonstrated by large retailers like Costco and Amazon, which benefit from large-scale operations. Moreover, attention needs to be paid to product design expertise, value chain configuration, and efficient management of essential value chain activities. Integration of labor rights protection with supply chain management is also imperative for sustaining long-term efficiency and ethical standards.