Capabilities that other firms cannot develop easily are classified as:
A) costly to imitate.
B) rare.
C) valuable.
D) nonsubstitutable.

Question

Quizplus · Accepted Answer

Capabilities that other firms cannot develop easily are classified as costly to imitate because they require significant resources, time, and expertise to acquire and replicate. This makes them a valuable resource for the firm that possesses them as they create a competitive advantage and increase the firm's market power. This advantage is sustainable if other firms cannot imitate it quickly or at a similar cost.

Capabilities That Other Firms Cannot Develop Easily Are Classified As