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Question 111 - CPIM-Part-2 discussion

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A company has deployed its own proprietary software for web hosting and order management. This software has been recognized as best-in-class. The proprietary software represents what defensive operational strategy used to sustain the company's business over time?

A.
Difficult to substitute
Answers
A.
Difficult to substitute
B.
B. Difficult to relocate
Answers
B.
B. Difficult to relocate
C.
Scarcity
Answers
C.
Scarcity
D.
Difficult to copy
Answers
D.
Difficult to copy
Suggested answer: D

Explanation:

Difficult to copy is a defensive operational strategy used to sustain the company's business over time by creating a unique product or service that is hard for competitors to imitate. The proprietary software for web hosting and order management represents this strategy, as it has been recognized as best-in-class and may have some features or functions that are not easily replicated by others. Difficult to substitute is a defensive operational strategy that creates a product or service that has no close substitutes in the market, making it more valuable and desirable for customers. Difficult to relocate is a defensive operational strategy that locates the production or service facilities in a place that has some advantages or benefits that are not available elsewhere, such as low labor costs, favorable tax policies, or access to natural resources. Scarcity is a defensive operational strategy that creates a product or service that has limited supply or availability, making it more exclusive and attractive for customers.Reference: CPIM Exam Content Manual Version 7.0, Domain 8: Manage Quality, Continuous Improvement, and Technology, Section 8.1: Quality Concepts, p. 44; Defensive Strategy; Competitive Advantage.

asked 16/09/2024
Eissa Abdulrahman Eissa
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