For a company to translate its performance of value chain activities into competitive advantage, it must
A) undertake ongoing and persistent efforts to be cost-efficient and develop differentiation advantages.
B) have more core competencies than rivals.
C) have at least three distinctive competencies.
D) have competencies that allow it to produce the highest-quality product in the industry.
E) have more competitive assets than competitive liabilities.

Question

Quizplus · Accepted Answer

To translate performance of value chain activities into competitive advantage, the company must focus on both cost-efficiency and differentiation advantages. It must continuously strive to improve its processes and reduce costs while also developing unique features or superior quality that differentiates it from rivals. Having more core competencies or distinct competencies may be helpful, but it is not a necessary condition for achieving competitive advantage. Similarly, producing the highest-quality product is not always the only way to win in the market. Finally, the notion of competitive assets and liabilities is not directly relevant to the question of how to leverage value chain activities for competitive advantage.

For a Company to Translate Its Performance of Value Chain