Question 38 A firm gains competitive advantage by outperforming competitors in terms of competitive priorities, which fall into four major groups: ______ and ______. Options: 1. cost, customization, price, availability 2. cost, quality, time, flexibility 3. location, location, location, price 4. cost, price, design, technology
Answer (1)
In business, competitive advantage is an attribute that allows a firm to outperform its competitors. To gain competitive advantage, a firm can focus on outperforming its competitors in terms of competitive priorities. These priorities generally fall into four major groups that help an organization stand out in the marketplace. The correct answer from the given options is:
cost, quality, time, flexibility
Here's a breakdown of each component:
Cost : This refers to the ability of a firm to produce goods or services at a lower price than its competitors. Lower costs can be achieved through economies of scale, more efficient production processes, or access to cheaper raw materials.
Quality : Ensuring high standards in products and services can differentiate a firm from its competitors. High quality can lead to increased customer satisfaction and repeat business.
Time : In the context of competitive priorities, time refers to the speed at which a company can deliver products or services. This can include reducing lead times for delivery, accelerating the product development process, or faster service responses.
Flexibility : This is the ability to adapt to changes in the market, such as shifts in customer preferences or new regulations. Flexibility can involve altering production processes, customizing products for specific customer needs, or rapidly changing the mix of products to suit market demand.
By excelling in these areas, a firm can establish a strong competitive position in the marketplace, leveraging its strengths to meet customer needs more effectively than its competitors.
