Company X's principal strength is its inbound and outbound logistics system; its relative weakness,however is after-sales service.Its competitor,Company Y,however is often plagued with lagging shipments and an inflexible distribution setup.Company Y remains successful because it maintains a fully staffed service department and as a result the company is known for its dependable service._______ allows them to identify ways to build on relative strengths and avoid dependence on capabilities at which the other firm excels.
A) Industry comparison
B) Benchmarking
C) Past performance comparison
D) Disaggregating

Question

Quizplus · Accepted Answer

Benchmarking allows Company X to compare its own logistics system with that of Company Y and identify areas where it can improve its after-sales service, while still maintaining its strength in logistics. This way, Company X can build on its relative strength and avoid dependence on Company Y's capabilities. Industry comparison and past performance comparison may provide some insight, but benchmarking would be more precise and informative. Disaggregating is not relevant to this situation.

Company X's Principal Strength Is Its Inbound and Outbound Logistics