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.
- ALow cost
- BDelivery speed (time)Correct
- CVolume flexibility
- 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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