A firm has a competitive advantage when:
A)the value-creating strategy is in the formulation stage
B)competitors are simultaneously implementing the strategy
C)competitors are not able to duplicate the strategy
D)average returns are earned by the company

Question

Quizplus · Accepted Answer

A competitive advantage is achieved when a company has a strategy that is valuable, rare, difficult to imitate, and non-substitutable. Therefore, if competitors are not able to duplicate the strategy, it means that it is difficult to imitate, and the firm has a competitive advantage. The other choices do not necessarily indicate a competitive advantage.

A Firm Has a Competitive Advantage When