Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A furniture manufacturer makes basic decorative pieces such as tables, bookcases, and TV stands. This company uses a cost leadership strategy. To implement this strategy,

A furniture manufacturer makes basic decorative pieces such as tables, bookcases, and TV stands. This company uses a cost leadership strategy. To implement this strategy, some key activities in the value chain are:
using acceptable quality but basic input materials to construct the furniture
in the design and construction of the products, each one uses basic, standard pieces that are efficiently packaged so that customers can easily get them home from a store and complete easy do-it-yourself assembly, meaning that the products can be distributed through multiple retailers and no home delivery and set-up service is necessary
costs can be kept low by providing service after the sale through videos available online to describe assembly of the furniture and how to solve common assembly problems. By having these videos, the company reduces the calls that it receives from customers that need to be handled by employees.
Which of the following statements about this company's strategy and its value chain activities are accurate? Multiple answers are correct - select all that apply.
a) The approaches to the activities as described are more useful for a differentiation strategy than a cost leadership strategy.
b) This company is taking an effective approach by aligning its activities to its strategy because a company gains competitive advantage by performing strategically important activities more cheaply or better than its competitors.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Blockchain And The Supply Chain Concepts

Authors: Nick Vyas, Aljosja Beije, Bhaskar Krishnamachari

2nd Edition

1398605239, 978-1398605237

More Books

Students also viewed these General Management questions