Question

explain how a company competes using global web of activities.

Answer 1

explain how a company competes using global web of activities.

global web of activities helps the company to source the goods and services from locations around the globe to avail the benefits of national differences in the terms of cost and quality of factors of production or services. Using global web of activities a company can lower their overall cost structure or improve the functionality or quality of their service offering, thus permitting them to compete more efficiently.

The creation of a global web of value creation activities includes various stages of the value chain being dispersed to those locations around the globe where company's costs of value creation are minimized or perceived value is maximized. It is the process of purchasing services from another firm and the firm is located in the same country. It is done with an objective of lowering operational costs. Tasks are outsourced to vendors who have specialisation in their field. The outsourced vendors own specific equipment and technical expertise, thus can deliver results very effectively.