Identify what are the strategic methods cost parity restored
Identify what are the strategic methods cost parity restored?
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When the foundation of a firm’s cost drawback is internal, managers can use any of the following strategic techniques to restore cost parity:
a. Implement the utilization of finest practices throughout the company, particularly for the high-cost activities.
b. Try to eliminate some cost-producing activities altogether by refurbishing the value chain.
c. Reposition high-cost activities to geographic regions where they can be performed more inexpensively.
d. Search out activities that can be outsourced from salespersons or performed by contractors more inexpensively than they can be done internally.
e. Invest in productivity-improving, cost-saving technological enhancements.
f. Innovate around the troublesome cost elements.
g. Make simpler the products design so that it can be assembled or manufactured more economically and quickly.
h. Try to make the internal cost drawback by achieving saves in the other two parts of the value chain system.
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