Runathon Inc. opened a store that displayed shoe brands only. The employees were polite and professional. Runathon also had experts who advised customers on the type of shoe best suited for a particular sport. A few years later, another company called FitRight Corp. opened next to Runathon. Although FitRight stocked shoe brands, sportswear, and other gear, it was not as profitable as Runathon because its salespeople were not as experienced and knowledgeable. Which of the following factors of inimitability did Runathon Inc. have?
A)Complexity
B)Time compression diseconomy
C)Path dependence
D)Virtuous circle

Question

Quizplus · Accepted Answer

Runathon Inc. had the factor of path dependence, which refers to the idea that an organization's history and past decisions shape its current capabilities and resources, making it difficult for other companies to replicate its success. Runathon had experts who advised customers on shoes, which suggested that its employees had been trained to develop specialized knowledge and skills that cannot be easily duplicated. Additionally, Runathon had established a reputation for providing high-quality service and advice that its customers had come to expect, making it difficult for FitRight to compete.