What pitfall does the use of strategic activity systems highlight when a competitor is considering imitating a rival firm?
A) Copyright infringement against copying the firm's processes
B) Compounding effect reducing of the probability of success copying each interconnected system activity
C) Path dependence of the core activities of the firm
D) Loss of competitive advantage due to reduction of VRIO

Question

Quizplus · Accepted Answer

A competitor can observe several elements of a strategic activity system. What if Firm A has 25 interconnected activities which underpin its competitive advantage? Firm B decides to imitate Firm A with a 90% accuracy rate. The probability of copying the whole system yields only a 7% accuracy rate.

What Pitfall Does the Use of Strategic Activity Systems Highlight