Merton's Toothpaste has been the leader of dental care products for about 40 years. However, this company relied too long on its competency of reducing cavities without refining or upgrading other aspects of its product. As a result, other personal hygiene companies that began to offer toothpastes with natural whitening agents gained a competitive advantage over Merton's. This case is an example of
A) resource flow.
B) dynamic capabilities.
C) core rigidity.
D) value chain.

Question

Quizplus · Accepted Answer

A core competency can turn into a core rigidity if a firm relies too long on the competency without honing, refining, and upgrading as the environment changes.

Merton's Toothpaste Has Been the Leader of Dental Care Products