To successfully imitate the strategy of another firm, an organization must:
A)Identify and diagnose the rival's advantage, believe in its ability to deliver a superior return, and, finally, acquire the resource
B)Identify and diagnose the rival's advantage, and then acquire the resource
C)Benchmark the rival's activities and resources, believe in a superior return, and build the rival's resource in-house
D)Benchmark the rival's activities and resources, identify the rival's weaknesses, and, finally, believe in its ability to deliver a superior return

Question

Quizplus · Accepted Answer

Successfully imitating the strategy of another firm requires first identifying and diagnosing the rival's advantage, then believing in the ability of the newly acquired resource to deliver a superior return. Without the conviction that the new resource will generate superior returns, the effort spent on imitating a rival strategy may be wasted. Simply acquiring the resource without understanding the rival's advantage is not enough to ensure success. Therefore, choice A is the most appropriate option. Choice B is incomplete because it does not account for the importance of understanding the rival's advantage, while choice C and D may not be effective in achieving success without the crucial belief in the resource's potential return.

To Successfully Imitate the Strategy of Another Firm, an Organization