Leon Royal Hotel was the first inn in the county of Belvore. It had started out with onlyseven rooms, providing bed and breakfast to travelers who came to Belvore. After 20 years of giving unique and satisfying service to its customers, Leon Royal Hotels grew to have more than 1,500 rooms. The facilities and services provided by the hotel made it one of the best hotels in the Belvor Meltown Inn started out a decade after the Leon Royal Hotel opened. The Meltown Inn started losing profits and eventually shut down in 1968 due to bad service. Which of the following factors of inimitability is explained in this scenario?
A)Tacit knowledge
B)Path dependence
C)Casual ambiguity
D)Complexity

Question

Quizplus · Accepted Answer

The scenario shows how Leon Royal Hotel was the first inn in the county of Belvore, and after 20 years of providing unique and satisfying service to its customers, it grew to have more than 1,500 rooms. This growth and success may be attributed to path dependence, which refers to the idea that early decisions and actions can have a significant impact on future outcomes and lead to a sustained competitive advantage. In contrast, Meltown Inn started out a decade after Leon Royal Hotel opened and eventually shut down due to bad service, indicating that it was unable to replicate the success of the first-mover advantage of Leon Royal Hotel.

Leon Royal Hotel Was the First Inn in the County