Which of the following is not an advantage of outsourcing the performance of certain value chain activities to outsiders?

a. being able to reduce distribution costs by eliminating the use of wholesale distributors and retail dealers and, instead, selling direct to end-users at the company’s website
b. allowing a company to reduce costs if the activity is not crucial to the firm’s ability to achieve sustainable competitive advantage and won’t hollow out its capabilities, core competencies, or technical know-how
c. improving organizational flexibility and speeding time to market
d. allowing a company to concentrate on its core business, leverage its key resources and core competencies, and do even better what it already does best
e. being able to reduce the company’s risk exposure to changing technology and/or buyer preferences

Ans: a. being able to reduce distribution costs by eliminating the use of wholesale distributors and retail dealers and, instead, selling direct to end-users at the company’s website

Business

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