Speed Express, a courier company, proves to be a challenge to its competitors. The technology, personnel, services, and organizational structure of the company are bound together to create a system widely appreciated by its customers. Speed Express has state-of-the-art facilities for its transportation, delivery, and packaging operations. Speed Express also has a range of travelling bags and brand of wrist watches. The company's success rests on the complex interplay between its functions, products, and operations. Customers remain loyal to the company and prefer it over other brands and services. Which of the following factors of inimitability does Speed Express have?
A)Time compression diseconomy
B)Path dependence
C)Complexity
D)Tacit knowledge

Question

Quizplus · Accepted Answer

Speed Express's success is based on the complex interplay between its functions, products, and operations, making it difficult for competitors to imitate the company's formula. Complexity is therefore the factor of inimitability that Speed Express possesses. Time compression diseconomy refers to the cost disadvantage caused by compressing production time. Path dependence refers to a situation where the current path or trajectory of an organization is heavily influenced by its past decisions. Tacit knowledge refers to knowledge that is difficult to communicate or transfer to others. None of these factors apply to Speed Express's inimitability.

Speed Express, a Courier Company, Proves to Be a Challenge