If a resource or capability is valuable and rare but not costly to imitate, exploiting this resource will generate a sustainable competitive advantage for a firm.

Question

Quizplus · Accepted Answer

If a resource or capability is not costly to imitate, then other firms in the industry can easily replicate it, leading to a loss of the competitive advantage. Therefore, for a sustainable competitive advantage, a resource or capability should be valuable, rare, and costly to imitate.

If a Resource or Capability Is Valuable and Rare but Not