Question

Quick Clean Chemicals outsources its production to contract manufacturers located in underdeveloped nations where unskilled labor is available in plenty for very low wages. This has helped the company become a price leader in the chemicals industry. Which of the following is the key driver behind Quick Clean's strategic position?
a. network effects
b. superior customer service
c. availability of complements
d. low-cost input factors

Answer 1

Answer:

The key driver behind Quick clean's strategic position is Option D: low-key input factors.

Explanation:

Strategic drivers help shape an organization. They can be forces both which are external and internal. External drivers can be like the competition of the firm, customer needs, taxes and so on. Internal factors may include profit goals, office politics, input which the organization is using to create its products and so on.

In the given scenario, Quick clean outsources its production to the manufacturers where the can get unskilled labor at low wages. Thus, it is their key driver as it helps them to get labor who take less salary, so their input cost is low and they are able to manufacture products and save the money they would use for workers who might more wages. Thus, 'Option D' is the most appropriate key driver.