5. Explain what is meant by the ter

5. Explain what is meant by the term competitive priority and describe the four categories of competitive priorities discussed in the chapter.

The competitive priority is the way in which we will compete in the marketplace. For example, will we be known for low prices or high quality? The categories of competitive priorities are cost, quality, time and flexibility. Cost involves a focus on keeping costs low. Quality focuses on the ability of the product or service to meet specifications or the requirements of the customer. The competitive priority of time focuses on speed of delivery and/or on-time delivery performance. Flexibility relates to the ability to customize the product or quickly change the production quantity.