Cartech Inc. is a manufacturer of automobile parts, which it sells to retail auto supply stores. Its core competencies include superior design and engineering capabilities, as well as a highly integrated and efficient supply chain. To sustain its competitive advantage, Cartech should first
A) seek to replicate its nearest competitor's competency in innovative marketing.
B) attempt to cut costs by replacing assembly line workers with robots.
C) upgrade its engineering department and improve its supply chain.
D) diversify its product offerings by developing parts for construction equipment.

Question

Quizplus · Accepted Answer

Core competencies that are not continuously nourished will lose their ability to yield a competitive advantage. Cartech should prioritize upgrading or improving its core competencies to ensure that competitors do not develop superior skills in those areas.