If a firm offers a service that is valuable, rare, and costly to imitate, but a substitute exists for the service, the firm will:
A) achieve competitive parity.
B) have a competitive disadvantage.
C) have a temporary competitive advantage.
D) gain a sustainable competitive advantage.

Question

Quizplus · Accepted Answer

The firm will have a temporary competitive advantage because while the service is valuable, rare, and costly to imitate, the existence of a substitute means that the advantage is not sustainable in the long term.

If a Firm Offers a Service That Is Valuable, Rare