Freulia Inc.manufactures and sells stationery and office supplies.The firm loses its competitive advantage with the entry of new competitors.In this case,in order to gain a sustainable competitive advantage,Freulia Inc.should:

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To gain a sustainable competitive advantage, Freulia Inc. should focus on building its own competitive advantages. Imitating the products of competitors may lead to a race to the bottom in terms of pricing, and it does not differentiate the company from its competitors. Depending on government subsidies is not a reliable long-term strategy, as it is subject to changes in government policies. Being the low-cost competitor in the industry may not be sustainable, as other competitors can easily replicate the strategy. Building its own competitive advantages, such as a strong brand, innovative products, or superior customer service, can differentiate Freulia Inc. from its competitors and create a sustainable competitive advantage.