One criteria for a resource or capability to be a source of competitive advantage is that it allows the firm to perform a value-creating activity that competitors cannot perform.

Question

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This statement accurately reflects one of the key criteria for a resource or capability to be considered a source of competitive advantage. In order to have an advantage over competitors, a firm must be able to do something better or more efficiently than its competitors, and that ability must be difficult or impossible for competitors to replicate. This is the basis of sustainable competitive advantage.

One Criteria for a Resource or Capability to Be a Source