Freulia Inc. manufactures and sells stationery and office supplies. The firm begins to lose 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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Developing the skills and assets of the organization is the best choice for Freulia Inc. to gain a sustainable competitive advantage. Imitating the products of competitors may lead to legal issues and may not differentiate the company from its competitors. Depending on government subsidies is not a reliable long-term strategy. Trying to be the low-cost competitor in the industry may not always work if the company cannot achieve cost savings through economies of scale or efficient operations. On the other hand, developing the skills and assets of the organization can help the company differentiate itself from its competitors and improve its performance. By investing in research and development, marketing, training, and innovation, Freulia can develop unique products or services, create a strong brand, and build customer loyalty. This will enable the company to achieve a sustainable competitive advantage in the long run.