In the context of sustainable competitive advantage, unlike rare resources, nonsubstitutable resources cannot be:
A) used by firms to improve their effectiveness.
B) controlled or possessed by many competing firms.
C) replaced by other resources to produce similar value.
D) used to sustain a competitive advantage.

Question

Quizplus · Accepted Answer

Nonsubstitutable resources cannot be replaced by other resources to produce similar value, which means they are unique and essential to a firm's competitive advantage. Rare resources, on the other hand, are also important for achieving sustained competitive advantage, but they can be imitated or substituted, albeit with difficulty. Therefore, the key characteristic that sets nonsubstitutable resources apart from rare resources is their level of uniqueness and inimitability.

In the Context of Sustainable Competitive Advantage, Unlike Rare Resources