The owner of a store retailing fine quality fabrics for home-sewers bewails the fact that few young women know how to do fine tailoring, much less simple dressmaking. Many potential customers are unable to appreciate the premium quality of the fabrics available and are deterred by the high prices, as well as the complexity of fine sewing. In the past, the store had a strong demand for fabrics, large classes for women learning the fine points of sewing, and a reputation for excellent service and technical advice. Now the store is earning lower-than-average returns. This case is an example of
A) the hazard of competitors being able to imitate a firm's core competency.
B) the need for firms to stick to their core competencies through temporary downturns in market demand.
C) the lack of intangible resources undermining the core competencies of the firm.
D) core competencies that have become core rigidities.

Question

Quizplus · Accepted Answer

The case describes how the store's previously successful core competency of teaching fine sewing and providing technical advice has become a core rigidity that no longer meets the needs of the market. Fewer women today have the desire or capability to perform fine sewing, and the store's high prices and emphasis on technical expertise no longer resonate. Thus, the store's previous strengths have now become inflexible liabilities.

The Owner of a Store Retailing Fine Quality Fabrics for Home-Sewers