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CMA Intermediate · Operations Management and Strategic Management · Introduction to Operations Management

A Chennai-based courier company advertises that it can deliver parcels within 4 hours anywhere in the city, even though its charges are higher than rivals'. Which competitive priority is it mainly emphasising?

The courier is emphasising delivery speed, the time-based competitive priority. Its promise of delivery within 4 hours is the basis on which it wins customers, even at a higher price, so cost leadership is not its main priority.

  1. ALow cost
  2. BDelivery speed (time)Correct
  3. CVolume flexibility
  4. DProduct design flexibility

Explanation

The firm's selling point is the 4-hour delivery commitment, which is a time or delivery speed priority. The higher price shows that low cost is not the focus. Nothing in the claim relates to changing volumes or product design.

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