Atlas Door tightly controlled logistics so that it always shipped only fully complete orders to construction sites. In regards to the five forces model, which of the following is a reason this might give them competitive advantage?
A)It helps to reduce the threat of new entrants.
B)It created low entry barriers for new entrants.
C)It created a high threat of substitution.
D)It gave more power to buyers.

Question

Quizplus · Accepted Answer

Atlas tightly controlled logistics so that it always shipped only fully complete orders to construction sites. Orders require many components, and gathering all of them at the factory and making sure that they are with the correct order can be a time-consuming task. Of course, it is even more time-consuming to get the correct parts to the job site after the order has been shipped. Atlas developed a system to track the parts in production and the purchased parts for each order. This helped to ensure the arrival of all necessary parts at the shipping dock in time. This time-saving efficiency also had cost benefits that make it difficult for new entrants to compete successfully, at least in the short run.

Atlas Door Tightly Controlled Logistics So That It Always Shipped