Author Question: Describe, with the help of an example, how a company can reduce its operating costs by omitting ... (Read 70 times)

Wadzanai · **on:** Jul 7, 2018

Describe, with the help of an example, how a company can reduce its operating costs by omitting middlemen.

What will be an ideal response?

Question 2

An example of raw data from a national chain of automobile stores would be

A) an average of 13 Toyotas are sold daily in Kentucky.
B) 30-percent increase in Toyota RAV4 sales during September in Kentucky.
C) 1 Toyota RAV4 sold March 3, 2013, in Louisville, Kentucky.
D) 10-percent improvement in sales projections for Toyota sales next year.
E) a demographic breakdown of all Toyota buyers in the past year.

dellikani2015 · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

Dell reduced its operating costs by bypassing the distributors and retailers in its supply chain. At dell.com, the customer selects a computer online, customizes it, clicks the Buy button, and then tracks the order until it arrives at the front door, shipped directly from the manufacturer. The monitor, shipped in a separate box, may come from a different manufacturer, but Dell synchronizes the delivery so all the hardware arrives at the same time. This low-cost strategy helped Dell dominate the PC market for a while.

Answer to Question 2

C