Atlas Door created competitive advantage by reducing the time to receive and process and order and through installing a just in time logistics operation.Which of the following is not a reason for their favorable position relative to the five forces of industry competition?
A) It exerted power over its customers.
B) It created high entry barriers for new entrants.
C) The integration of many value-chain activities in the firm provided causal ambiguity and path dependency.
D) The product was easily imitable.

Question

Quizplus · Accepted Answer

When Atlas began operations, distributors had little interest in its product. The established distributors already carried the door line of a much larger competitor and saw little to no reason to switch suppliers except, perhaps, for a major price concession. But as a startup, Atlas was too small to compete on price alone. Instead, it positioned itself as the door supplier of last resort, that is, the company people came to if the established supplier could not deliver or missed a key date. With an average industry order fulfillment time of almost four months, some calls inevitably came to Atlas. And when it did get the call, Atlas commanded a higher price because of its faster delivery. Atlas not only got a higher price, but its effective integration of value-creating activities saved time and lowered costs. Thus, it enjoyed the best of both worlds.

Atlas Door Created Competitive Advantage by Reducing the Time to Receive