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Audio Component Outsourcing

Question 13

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Audio Component Outsourcing
The Echo Corporation manufactures high-quality audio components, such as speakers, amplifiers, and receivers, for home entertainment systems. Echo has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in global sourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that global sourcing would enable the firm to be more competitive without sacrificing quality.
-Which of the following is most likely a potential benefit of Echo globally sourcing some of its value-chain functions?


A) heightened communications awareness
B) increased activity in e-commerce sales
C) strong intellectual property protection
D) improved manufacturing productivity

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