Cajemp Inc. is a real estate developer that has been in the market for several years. Most real estate developers are now constructing their projects using concrete blocks as they are more durable and easier to lay out when compared to traditional brick and mortar. Cajemp, however, has been reluctant to use concrete blocks because its brick and mortar houses have been selling well so far. They will continue to sell the same even if new competitors and better products enter the market. Which of the following concepts is illustrated in this scenario?
A) Strategic dissonance
B) Competitive inertia
C) Competitive advantage
D) Strategic alliance

Question

Quizplus · Accepted Answer

The scenario illustrates the concept of competitive inertia, which refers to a company's reluctance to change its strategies and products even in the face of changing market conditions or new competitors. Cajemp is continuing to stick with traditional brick and mortar construction even though concrete blocks are becoming the norm in the industry. This inertia could lead to the company being left behind by its competitors who are adapting to the new technology.