For a company to achieve strategic fit, what key must it accomplish?

Achieving strategic fit involves aligning a company's supply chain capabilities with the needs of its target market while ensuring profitability. The correct answer emphasizes the importance of ensuring that the overall supply chain operates at the lowest cost possible. This means that the company is effectively utilizing its resources, managing its processes efficiently, and minimizing waste, which ultimately contributes to maintaining a competitive advantage in the market.

When a company focuses on operating at the lowest possible cost within its supply chain, it can better serve its customers through lower prices or improved service levels. This alignment is crucial as it helps to meet customer expectations while keeping operational expenses under control. Thus, an effective supply chain strategy not only addresses cost efficiency but also ensures that the organization can react to market demands swiftly and effectively.

In contrast, while maximizing product innovation may contribute to a company’s long-term success, it does not guarantee alignment with market needs in terms of cost and efficiency. Reducing customer interactions might lead to cost savings but does not inherently improve strategic fit; rather, it could distance the company from understanding and responding to customer demands. Increasing advertising spending can enhance a company’s visibility and market appeal, but without the foundation of a well-aligned supply chain, these efforts may not lead to improved sales or customer satisfaction.