Why is it important for companies to achieve competitive advantage?
A) Competitive advantage guarantees a firm's long-term success.
B) Competitive advantages are impossible to overcome or imitate.
C) Competitive advantages help to improve financial returns.
D) Competitive advantages are inexpensive ways to build market power.

Question

Quizplus · Accepted Answer

Achieving competitive advantage helps companies improve their financial returns. This can be done through increased sales and revenue, higher profit margins, and greater efficiency in operations. However, competitive advantages are not impossible to overcome or imitate, and they may require significant investment and effort to create and maintain. While competitive advantages can lead to long-term success, they are not a guarantee of it. Additionally, building competitive advantage may involve significant costs and may not be an inexpensive way to build market power.

Why Is It Important for Companies to Achieve Competitive Advantage