Smarty Tots manufactures children's clothing and prices them at twice the price of other children's clothing brands. The clothes sell exceptionally well because customers believe that its clothes are made of non-irritant and non-allergenic fabric. Smarty Tots's competitors do not have access to this type of fabric and cannot produce the same quality of clothing. The special fabric used in the clothing gives Smarty Tots _____.

Question

Quizplus · Accepted Answer

Smarty Tots has a sustainable competitive advantage because it has access to a unique type of fabric that its competitors cannot easily replicate. This gives the company a long-term advantage over its competitors and makes it difficult for them to enter the market or compete effectively.

Smarty Tots Manufactures Children's Clothing and Prices Them at Twice