If a firm wants to develop a sustainable competitive advantage,it should
A) begin an aggressive campaign to buy up competitors.
B) copy the innovative features of other firms that are attractive to customers.
C) examine its operations and customer relations to identify significant things competitors cannot easily copy.
D) increase its marketing budget so that it outspends its competitors.
E) arrange to meet with competitors to discuss how to avoid direct competition.

Question

Quizplus · Accepted Answer

To develop a sustainable competitive advantage, a firm needs to identify significant things competitors cannot easily copy. Such factors can include unique processes, exclusive relationships with suppliers, patents or other intellectual property, and a strong brand reputation. Copying innovative features of other firms or engaging in aggressive buyouts may provide short-term benefits but will not create a lasting advantage. Similarly, outspending competitors on marketing or collaborating with them to avoid competition will not necessarily create a sustainable advantage.

If a Firm Wants to Develop a Sustainable Competitive Advantage,it